CoinDesk reported that according to the financial forecast statement submitted by Grayscale, its registered Grayscale Bitcoin Mini Trust (BTC) will charge a fee of 0.15%, which is higher than the current Bitcoin spot funds on the market. Come low.
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ToggleMini Grayscale Bitcoin Spot ETF Fee May Be Just 0.15%
Grayscale submitted an S-1 document to the SEC on March 12. It registered a mini version of the Grayscale Bitcoin Spot ETF (Grayscale Bitcoin Mini Trust, BTC), which will be listed on the New York Stock Exchange Arca.
Grayscale plans to spin off 10% of GBTC’s assets and establish a new Bitcoin Mini Trust (BTC). The shares of the BTC trust will be automatically issued and distributed to holders of GBTC shares. According to its current financial forecast, the spin-off version of the fund plan will charge a fee of 0.15%, which is lower than the current Bitcoin spot ETF on the market. Currently, Franklin's EZBC has an expense ratio of 0.19%, making it the lowest-cost Bitcoin spot ETF.
Automatic split, exempt from capital gains tax
The Grayscale spin-off is treated as a tax-free event for existing GBTC shareholders, so these investors can automatically transfer their existing shares into the new fund without paying capital gains tax. This is beneficial to some early GBTC investors who have gained thousands of times, because if they want to sell their original GBTC and switch to other products with lower fees. Will face high capital gains tax.
However, Bloomberg ETF analyst Eric Balchunas said that pro-forma financials are forecasts of future expenses and income based on the company's past experience and plans. This is only a hypothetical estimate, and the expenses announced at that time are not It must be 0.15%, but Huidu knows that everyone is paying attention, so he will continue to update everyone with the latest information.
UPDATE: so this is pro-forma financials and as such hypothetical. It doesn't nec mean $BTC will be 15bps. But the good news is they had to pick a number for this and knew ppl would be watching and they decided on 15bps . Anyway, do with that what you will. Updates as I get them!…
— Eric Balchunas (@EricBalchunas) April 20, 2024
