Grayscale Launches Bitcoin Mini Trust on NYSE Arca

Grayscale, a major player in the cryptocurrency investment landscape, has expanded its portfolio by introducing the Bitcoin Mini Trust, a “spin-off” of its established spot Bitcoin ETF.

Overview of Grayscale Bitcoin Mini Trust

The Grayscale Bitcoin Mini Trust serves as an extension of Grayscale’s spot Bitcoin ETF, which launched in January 2024 with the approval of the U.S. Securities and Exchange Commission (SEC).

This new investment vehicle officially commenced trading on the NYSE Arca at 8 AM UTC on July 31, 2024, under the ticker symbol “BTC.”

As a unique feature, the Bitcoin Mini Trust was established by allocating 10% of the underlying Bitcoin from GBTC, thus creating a direct relationship between the two products.

At the commencement of trading, the Bitcoin Mini Trust had a net asset value per share of $5.84, with total assets under management amounting to $1.7 billion as of July 30, 2024.

Regulatory Status

It is important to note that the Grayscale Bitcoin Mini Trust is not registered under the Investment Company Act of 1940 and does not fall under the same regulatory framework as typical mutual funds.

“BTC’s distribution event is known as a ‘spin-off,’ an action that is not expected to trigger a taxable event for GBTC or its beneficial owners as of the record date of July 30, 2024. Investors should consult with their tax advisors for specific tax guidance.”

This announcement is part of an evolving narrative, and updates will be provided as new information emerges.