SEC Approves Grayscale Bitcoin Mini Trust
The U.S. Securities and Exchange Commission (SEC) has greenlighted the Grayscale Bitcoin Mini Trust, a scaled-down version of Grayscale’s flagship Bitcoin Trust (GBTC). The approval, granted on Friday, specifically pertains to the 19b-4 form for the new trust, according to an official filing.
The mini trust, which will trade under the ticker symbol “BTC,” is envisioned as a spin-off from GBTC.
GBTC Shareholders to Receive New Shares of the Mini Trust
According to an S-1 filing from March, GBTC shareholders will receive new shares of the mini trust as GBTC allocates a portion of its bitcoin holdings to this new entity.
“The Commission finds that the proposals, similar to other exchange-traded products (ETPs) it has approved, are designed to ensure fair disclosure of information necessary for accurate pricing of the trust’s shares, prevent trading in opaque conditions, protect non-public material information about the trust’s portfolios, and maintain fair and orderly markets for the trust’s shares,” the SEC stated.
Despite the SEC’s approval, Grayscale is still awaiting the effectiveness of the registration statement for the Grayscale Bitcoin Mini Trust.
Competitive Management Fees
At 0.15%, management fees for the Mini Trust are significantly lower than those of Grayscale’s older GBTC fund, which charges an annual fee equal to 1.5% of assets under management (AUM).
This development follows the SEC’s approval of 11 spot Bitcoin ETFs over seven months ago, which have collectively attracted millions of dollars. More recently, the SEC also approved spot Ethereum ETFs.
Grayscale’s Expanding ETF Portfolio
Grayscale has received approval for both spot Ethereum and spot Bitcoin ETFs. On July 8, Grayscale announced a similar move with its Grayscale Ethereum Trust (ETHE) ETF, with existing ETHE shareholders receiving proportional distributions of shares in its new Grayscale Ethereum Mini Trust (ETH).
Jersey City’s Pension Fund to Invest in Bitcoin ETFs
The municipal pension plan of Jersey City, New Jersey, is set to allocate part of the city’s pension fund to crypto ETFs. The Employees Retirement System of Jersey City is currently navigating regulatory requirements with the SEC to integrate a portion of its assets into Bitcoin ETFs.
While specific details regarding the allocated percentage of pension funds to Bitcoin ETFs remain undisclosed, Mayor Fulop hinted that Jersey City’s approach would mirror Wisconsin’s state pension fund, which committed a 2% allocation to Bitcoin ETFs earlier this year.
Hedge Funds and Crypto Markets
Quantitative fund Kbit believes that greater returns lie within the digital asset space itself as hedge funds turn to traditional strategies like the basis trade to capitalize on the recent surge of crypto ETFs.
“The larger opportunities, higher return opportunities are in the crypto native markets,” said Ed Tolson, founder and CEO of Kbit, during a recent interview. Tolson emphasized the importance of engaging with centralized crypto exchanges and trading various crypto instruments, including tokens, perpetual swaps, and derivatives.
