Grayscale plans spin off of spot bitcoin ETF

economictimes.indiatimes.com:

Digital asset manager Grayscale Investments on Tuesday filed for a spin-off of its spot bitcoin exchange-traded fund (ETF), the Grayscale Bitcoin Trust (GBTC).

The spin-off is part of a bid to offer investors lower-fee exposure to bitcoin, according to a person familiar with the matter.

GBTC — which in January received approval to convert from a trust to an ETF — currently has higher fees than its peers, one of the key factors in drawing investors to rival ETFs, Reuters has reported.

Grayscale filed to list shares of a new investment product, the Grayscale Bitcoin Mini Trust, which will receive a certain amount of bitcoin held by GBTC. In exchange, current GBTC shareholders will get stock in the Mini Trust, the company said.

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Since January, GBTC has seen capital outflows of $11.05 billion, according to data from crypto research firm BitMEX Research, even as bitcoin climbed to an all-time high and competitors recorded inflows over the same period. Grayscale is yet to determine the fees the Mini Trust will charge, according to the filing.