Grayscale Files Application For Mini Bitcoin ETF

Digital asset manager Grayscale has filed an application with the SEC for a new spinoff product called the Bitcoin Mini Trust. If approved, it will use the $BTC ticker.

The filing outlines plans to distribute a portion of GBTC shares to seed the Bitcoin Mini Trust. GBTC is Grayscale’s flagship fund with over $27 billion in assets.

While the fee structure of the proposed ETF is yet to be made public, Coindesk reports that it is likely to compete with existing low-cost ETFs. The spinoff is not expected to be a taxable event for GBTC holders.

“Pending approval, we plan for this new ETF to launch with a materially lower fee. This would be net-positive for existing GBTC investors, who would benefit from a lower blended fee with the same exposure to Bitcoin, spanning ownership of shares of both $GBTC and $BTC,” the company said on X.

Grayscale is planning to launch the Bitcoin Mini Trust after GBTC has seen more than $11 billion in outflows since the launch of nine spot Bitcoin ETFs. BlackRock’s IBIT charges an annual fee of 0.12%, while Fidelity’s FBTC offers zero fees until July. Meanwhile, GBTC’s fees are the highest among all Bitcoin spot ETF products at 1.5%.

The proposed Bitcoin Mini Trust is part of Grayscale's efforts to expand the accessibility of digital asset investments and make Bitcoin more widely available. The SEC filing is a crucial step in establishing the Bitcoin Mini Trust as a separate entity from GBTC.

Bitcoin is trading at around $70,000 at the time of writing, down 3% on the day.