Grayscale Reveals 0.15% Fees For Its Bitcoin Mini Trust ETF

Grayscale, the company behind the popular Bitcoin ETF product GBTC, has shared information about its new spin-off fund, the Bitcoin Mini Trust (BTC), in a recent filing. Notably, the Bitcoin Mini Trust will charge investors a lower fee of 0.15% compared to the 2% fee for GBTC.

The filing offers a clear demonstration of the 63,204 bitcoins (BTC) that Grayscale intends to transfer to its mini fund. This equates to 10% of the total assets in GBTC, as stated in the document. Subsequently, shareholders of GBTC will receive and be allocated shares in the BTC trust automatically. (Financial statements projected for future periods are referred to as pro forma financial statements, derived from a company’s historical data and business strategy.)

The Bitcoin Mini Trust by Grayscale was created as an alternative for GBTC investors, providing them with a less expensive choice that aligns more closely with the fees of other Bitcoin ETFs, which were authorized starting from January.

For GBTC’s current shareholders, this offshoot is viewed as a tax-free transaction. Consequently, they won’t have to immediately pay capital gains taxes when transferring their shares to the new fund. Some early-stage GBTC investors, who have amassed substantial gains, would otherwise face a sizeable taxable event if they were to switch to a rival product with lower fees.

About a decade ago, the Grayscale Bitcoin Trust (GBTC) emerged, carrying a substantial fee of 1.5% for investors. Initially available only through private placements, the shares became publicly tradable in mid-2015 on an over-the-counter market. This arrangement continued until January 2024 when GBTC transitioned to listing as a spot Bitcoin ETF on NYSE Arca.