A smaller cousin of Grayscale’s flagship Bitcoin Trust (GBTC), the Grayscale Bitcoin Mini Trust has received approval from the U.S. Securities and Exchange Commission (SEC). An official document indicates that the approval, which was given on Friday, is directly related to the 19b-4 form for the new trust. The idea is for the mini trust to split out from GBTC and use the ticker sign “BTC” when trading.
GBTC Shareholders to Receive New Shares of the Mini Trust
An S-1 filing from March indicates that GBTC will be allocating some of its bitcoin holdings to a new organization, the mini trust, and that GBTC owners will receive new shares of this trust.
The SEC stated that the proposals aim to safeguard non-public material information about the trust’s portfolios, prevent trading in opaque conditions, maintain fair and orderly markets for the trust’s shares, and ensure fair disclosure of information necessary for accurate pricing of the trust’s shares. This is similar to other exchange-traded products (ETPs) that the Commission has approved.
The Grayscale Bitcoin Mini Trust registration statement has not yet taken effect, notwithstanding the SEC’s approval. Compared to Grayscale’s previous GBTC fund, which charged 1.5% of AUM per year in management costs, the Mini Trust’s 0.15 percent fee is over ten times lower.
This comes after eleven spot Bitcoin ETFs, which were approved by the SEC seven months ago and have now raised millions of dollars, were approved. Not long ago, the market was taken aback when the SEC approved spot Ethereum ETFs. Spot Ethereum and spot Bitcoin ETFs developed by Grayscale have both been approved.
Similar to what happened with the Grayscale Ethereum Trust (ETHE) ETF on July 8, the new Grayscale Ethereum Mini Trust (ETH) will distribute shares to current ETHE shareholders in a proportional manner. Grayscale is pleased to announce that their Ethereum Mini Trust, trading under the symbol $ETH, is now live. For the first six months, investors can add #Ethereum to their portfolios at no cost. Grayscale Ethereum Trust, our flagship Ethereum fund, has also been listed on the New York Stock Exchange (nicknamed $ETHE).
Jersey City’s Pension Fund to Invest in Bitcoin ETFs
Cryptocurrency exchange-traded funds (ETFs) are being considered for investment by the municipal pension plan of Jersey City, New Jersey. As it navigates SEC restrictions, the Employees Retirement System of Jersey City, a public pension system, is considering adding Bitcoin exchange-traded funds (ETFs) to its portfolio.
Mayor Fulop has dropped hints that Jersey City’s strategy will be similar to Wisconsin’s state pension system, which earlier this year committed 2% of its assets to Bitcoin exchange-traded funds (ETFs). Still, no specifics about the percentage allocation have been revealed. Despite hedge funds using tried-and-true methods like the basis trade to profit on the recent explosion of crypto ETFs, quantitative fund Kbit maintains that the digital asset industry offers better returns.
Crypto native markets provide “the larger opportunities, higher return opportunities,” remarked Kbit’s founder and CEO, Ed Tolson, in a recent interview. According to Tolson, trading a variety of crypto assets like tokens, perpetual swaps, and derivatives on centralized crypto exchanges is crucial.
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