Grayscale Proposes 'Mini Version' ETF Offering Tax-Free Bitcoin Exposure
Summary:
Grayscale has applied to register a 'mini version' of its Grayscale Bitcoin Trust (GBTC) as an ETF under the ticker “$BTC”, a move that would see shares distributed to existing GBTC shareholders. The new trust aims to provide tax-free Bitcoin exposure to GBTC investors, offering a more cost-competitive product. Further detailed information is pending.
Grayscale, a prominent investment manager, recently submitted an application to introduce a 'mini version' of its Grayscale Bitcoin Trust (GBTC) as an exchange-traded fund (ETF), with the proposed ticker symbol “$BTC”. The firm filed an S-1 form with the U.S. Securities and Exchange Commission on March 11, with the initiative’s approval entailing its independent listing on the New York Stock Exchange, separate from Grayscale's principal GBTC fund. Existing GBTC shareholders are expected to receive shares of the new Bitcoin (BTC) trust, as GBTC plans to endow the new trust with an unspecified quantity of Bitcoin, as indicated in the submitted document. The newly proposed trust seeks to provide GBTC investors with Bitcoin exposure that is exempt from taxation, according to Bloomberg ETF analyst James Seyffart. In a recent post on X (previously known as Twitter), Seyffart highlighted that details regarding fee structure and the proportion of $GBTC spinning off are yet undisclosed though he anticipates this will be a non-taxable pathway for GBTC shares to transition into a more affordable product that can compete on cost. In related news, CoinShares has recently procured Valkyrie's ETF division. This story is under development with additional information to be provided upon availability.
Published At
3/12/2024 4:05:55 PM
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