Grayscale’s GBTC ‘spin-off’ Bitcoin Mini Trust goes live on NYSE Arca

After launching its spot Bitcoin ETF in January 2024, Grayscale now diversifies its offering with a “spin-off” spot Bitcoin ETP.

American cryptocurrency investment firm Grayscale is diversifying its spot Bitcoin (BTC) exchange-traded fund (ETF) offering by launching a “spin-off” of its Grayscale Bitcoin Trust ETF (GBTC).

Grayscale officially announced that its Grayscale Bitcoin Mini Trust debuted trading on the electronic securities exchange NYSE Arca at 8 am UTC on July 31.

What is Grayscale Bitcoin Mini Trust?

The Grayscale Bitcoin Mini Trust is positioned as a “spin-off” of the spot Bitcoin ETF that Grayscale started trading in January 2024, following approval from the United States Securities and Exchange Commission (SEC).

The new investment product is now listed on NYSE Arca as a spot Bitcoin exchange-traded product (ETP) under the ticker symbol “BTC.”

According to Grayscale, the Grayscale Bitcoin Mini Trust was created through the innovative mechanics of initial seeding by distributing 10% of GBTC’s underlying Bitcoin to BTC.

The spot Bitcoin ETP begins trading with a net asset value per share of $5.84 and $1.7 billion in assets under management as of July 30, 2024.

Grayscale mentioned that the Grayscale Bitcoin Mini Trust is not registered under the Investment Company Act of 1940 and is not subject to regulation under the Investment Company Act of 1940, unlike most mutual funds. The firm added:

“BTC’s distribution event is colloquially known as a ‘spin-off,’ and is a corporate action that is not expected to be a taxable event for GBTC nor any beneficial owner of GBTC shares as of the previously announced record date of July 30, 2024. Investors are encouraged to consult a tax advisor for related tax guidance.”

This is a developing story, and further information will be added as it becomes available.