The U.S. Securities and Exchange Commission has approved the 19b-4 form for the Grayscale Bitcoin Mini Trust. However, the product’s S-1 registration statement needs to be effective before trading can start.Â
The Grayscale Bitcoin Mini Trust Set to Hit the Market Soon
According to Nate Geraci’s recent post on X, the regulatory agency has given green light to Grayscale’s latest Bitcoin ETF application.
Grayscale Bitcoin Mini Trust 19b-4 has been APPROVED…
Spinoff from GBTC set to happen next Wednesday (date of record is Tuesday).
Will be lowest cost spot bitcoin ETF at 15bps. pic.twitter.com/opFrSAENFu
— Nate Geraci (@NateGeraci) July 26, 2024
In a filing submitted on July 26, it was revealed that the Grayscale Bitcoin Mini Trust with the ticker BTC will go live on NYSE’s Arca platform. This approval is a significant achievement for the investment firm as it is set to provide investors with a more cost-effective option compared to the Grayscale Bitcoin Trust (GBTC).
The new fund will be a spin-off of GBTC that is already trading. This is because GBTC will be transferring a certain percentage of its Bitcoin holding to the new trust. Just like the Grayscale Ethereum Mini Trust, the management fee for the Grayscale Bitcoin Mini Trust is also set at 15 basis points.
Grayscale’s Strategic Moves in the Industry
Notably, Grayscale is still awaiting the BTC Trust’s registration statement on the Form S-1 to kick in. This statement is super crucial for legal and regulatory matters, allowing the trust’s shares to be offered to the public.
The market is eagerly anticipating the completion of this final regulatory process. The record date for the initial distribution of the digital funds shares is set for Tuesday, July 30, 2024. The distribution is expected the next day. Shareholders of record of GBTC as of the close of business on the record date will receive a one-for-one distribution of new shares in the Bitcoin Mini Trust.
The fee reduction for Grayscale Mini Trust is part of a long-term strategy to attract more investors and solidify the firm’s position in the rapidly growing ETF industry. Impressively, the leading crypto asset manager recently introduced a new Decentralized AI Fund. The new funds will offer investors the chance to engage with decentralized AI protocols and prominent’ altcoins in the ecosystem.
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