Key Points
- The SEC has approved Grayscale’s Bitcoin Mini Trust ETF, set to launch next week with a low fee of 0.15%.
- Grayscale’s stock increased by 5.18% following the SEC’s approval, indicating positive market sentiment.
The Securities and Exchange Commission (SEC) has given the green light to Grayscale’s Bitcoin Mini Trust ETF. This new offering is set to begin trading next week and will feature a low fee of 0.15%. The news was shared by Nate Geraci, who stated that the Grayscale Bitcoin Mini Trust 19b-4 has been approved and is set to launch next Wednesday.
SEC Approves Grayscale Bitcoin Mini Trust
The SEC’s announcement clarified that the Grayscale Bitcoin Mini Trust will act as a spinoff of GBTC. The shares of the Mini Trust will be distributed to GBTC shareholders who contribute a specific amount of Bitcoin to the Trust, as per initial filings. The SEC stated that the move is consistent with the Exchange Act and rules and regulations applicable to a national securities exchange.
However, Grayscale will need to wait for the effectiveness of Bitcoin’s registration statement on form S-1. This will allow Bitcoin to open as a spot for Bitcoin ETP.
Lower Fees for Competitive Advantage
The Mini Trust’s low fee is designed to give it a competitive advantage. With the approval of 11 spot BTC ETFs earlier this year, competition has increased. As such, the Mini Trust’s fee of 15 basis points (15bps) is aimed at competing with other ETFs that have lower fees.
This move is expected to attract investors and compete effectively with other ETFs as the adoption of these digital assets becomes more commonplace among institutional investors.
The SEC’s approval had a positive impact on GBTC’s stock, which increased by 5.18% in 24 hours. Total assets under management have also increased over the last 30 days from $16.98 billion to $17.54 billion. This trend indicates a positive market sentiment towards Bitcoin and greater institutional interest.
As international monetary systems continue to shift, Bitcoin is well-positioned for growth. With rising geopolitical tensions, cryptocurrencies like Bitcoin will likely be used more frequently to bypass sanctions and settle international trade. These changes are expected to positively impact Bitcoin’s price and, by extension, GBTC’s value.
The approval of Grayscale’s BTC Mini Trust allows individual investors and institutions to invest with lower fees. This affordability is expected to attract more customers and revenue for Grayscale. Moreover, it provides investors with a secure and regulated way to access Bitcoin.
