According to a report by CoinDesk, the registered Grayscale Bitcoin Mini Trust (BTC) is expected to charge a fee of 0.15%, which is lower than the current bitcoin spot funds on the market.
Grayscale submitted an S-1 document to the SEC on March 12th, registering 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 split one-tenth 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 GBTC shareholders. According to its current financial forecast, the planned split version of the fund will charge a fee of 0.15%, which is lower than the current bitcoin spot ETFs on the market. Currently, Franklin’s EZBC has a fee rate of 0.19%, making it the lowest-cost bitcoin spot ETF.
For existing shareholders of GBTC, the Grayscale split is seen as a tax-free event, so these investors can automatically transfer their existing shares to the new fund without paying capital gains tax. This is advantageous for some early GBTC investors who have seen returns of thousands of times, as they would face significant capital gains tax if they were to sell their original GBTC and buy other products with lower fees.
However, Eric Balchunas, an ETF analyst at Bloomberg, stated that pro-forma financials are based on the company’s past experience and projections of future expenses and income. These are only hypothetical estimates, and the disclosed fees may not necessarily be 0.15%. However, Grayscale is aware that everyone is concerned, so they will continue to update the latest information for everyone.