The financial giant behind the Grayscale Bitcoin Trust (GBTC) is filing a new BTC product with the leading United States securities regulator.
According to a new filing with the U.S. Securities and Exchange Commission (SEC), Grayscale is attempting to register a “Grayscale Bitcoin Mini Trust,” a spin-off of GBTC.
The new product aims to allow investors to hold units of fractionalized ownership in the trust, and will reportedly have lower than usual fees, though a specific fee structure has not been revealed.
According to Bloomberg ETF expert James Seyffart, existing holders of GBTC will have a portion of their holdings spun off into the new Grayscale Mini Trust, which will trade under the “$BTC” ticker.
Says the analyst,
“It’s happening! Grayscale just filed to launch the ‘Grayscale Bitcoin Mini Trust’ expecting this to have a competitive fee. It will trade under the ticker $BTC and will come from a spinoff from $GBTC. This means $GBTC holders will get some % of holdings spun off into $BTC…
There is no fee disclosed yet orrr what % of $GBTC will spin off but pretty sure this will be a non-taxable event for a chunk of those shares to get into a cheaper and cost competitive product…
But using the spinoff mechanism wasn’t something I expected or thought of. And definitely helps out long term GBTC holders — particularly the taxable ones who were sorta stuck with potential capital gains tax hits. Not a full solution. But way more helpful than launching a standalone product from scratch.
First impression is that it’s a nice middle ground between helping out customers and not decimating their revenue. Need to see the %’s and fees still though.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/tanatpon13p/Chuenmanuse