Grayscale Investments, the world’s largest digital currency asset manager, has disclosed new details about its upcoming fund, the Bitcoin Mini Trust. The company revealed that the Bitcoin Mini Trust, set to be listed on NYSE Arca under the ticker BTC, will charge a competitive fee rate of 0.15%.
Initially announced in March, the Bitcoin Mini Trust serves as a means for Grayscale to allocate some of the coins in Bitcoin’s oldest exchange-traded product to a smaller trust with lower fees, without triggering a taxable event for existing holders. Shares of the trust will be automatically distributed to holders as of the record date, which is yet to be announced.
According to Grayscale’s latest pro forma financial statement, the company plans to contribute 63,620 Bitcoin towards the initial distribution of the fund. This amounts to 10% of the Bitcoin held by GBTC at the beginning of the year, with a current value nearing $4 billion. Notably, both the Bitcoin Mini Trust and GBTC will trade independently and share no exposure, as outlined in the preliminary filing.
The fee structure of 0.15% for the Bitcoin Mini Trust positions it as the lowest outright fee in the industry. This fee is slightly lower than Franklin Templeton’s EZBC, although fee waivers and other incentives complicate direct comparisons. Currently, GBTC carries a fee of 1.5%, making it the highest among spot Bitcoin ETFs in the market.
With assets totaling $4 billion upon creation, the Bitcoin Mini Trust would rank as the fourth-largest spot Bitcoin ETF by assets under management (AUM) if established today. This places it behind Fidelity’s FBTC and BlackRock’s IBIT, with the latter becoming the new leader following the disbursement of GBTC.