Grayscale has been granted approval for another Bitcoin trust to list as an ETF offering. The report noted before that the investment vehicle will get a final registration before listing the fund.
The Securities and Exchange Commission (SEC) has confirmed approval of Bitcoin Mini Trust for an Exchange-Traded Fund (ETF) listing. New York Stock Exchange (NYSE) Arca electronic trading platform documents indicate the approval as of 26th July 2024.
The approval is considered an important milestone for Grayscale, which was planning to transfer funds from Grayscale Bitcoin Trust to Mini Trust. A spokesperson for the firm told that the enterprise was excited about the approval from the SEC.
The firm was on a path to file for NYSE Arca listing using 19b-4 application for Bitcoin Mini Trust. The ticker symbol proposed for this fund is BTC in the official filings.
Grayscale is looking forward to the effectiveness of Bitcoin registration as per the spokesperson. The approval and completion of the registration statement will enable Bitcoin to supervise spot US Bitcoin ETPs in addition to GBTC and more.
As per the listing documentation, Mini Trust has set the management fees at 0.15% that are 10 times less in comparison to GBTC fund. The GBTC annual fee is set around 1.5% in proportion to its assets under management (AUM).
Grayscale to Transfer GBTC Reserves into Mini Bitcoin Trust
As of 31st July, Grayscale will transfer 10% of Bitcoin reserves to GBTC into Mini Trust. The present GBTC investors will receive shares from Mini Trust. The share transfer amount is based on the proportion of GBTC shares. Mini Trust is viewed as aspinoff of the GBTC ETF.
With this investment vehicle, investors will have the same amount of spot Bitcoin as before but it will be distributed into two funds. As of 8th July, Grayscale debuted Grayscale Ethereum Trust (ETHE) ETF.
The ETHE investors received proportional shares for Grayscale Ethereum Mini Trust (ETH). GBTC and ETHE are touted as the earliest Bitcoin and Ethereum funds operating in the United States. These funds made a start in 2013 and 2017.
The GBTC fund now operates $17 billion in AUM. A Grayscale insider noted that the distribution offer for shareholders will unlock a tax-advantage for Grayscale investors by funneling funds into a new ETF.
A Nikkei Asia article on 26th July 2024 shared the details about the Bitcoin ETFs expansion on a global scale. The platform shared reports from Franklin Templeton partnering with SBI Holdings to start a new Bitcoin ETF listing.
As per the report, SBI is allocating a 51% stake in the new firm and remaining is operated by Franklin Templeton. The article quoted from EPFR statistics that Bitcoin spot ETFs have generated an overall inflow of $16 billion within the last 6 months.
Bitcoin ETF Listings on Stock Exchanges
The report also shared data from various global exchanges where regulators have approved Bitcoin spot ETF offerings and listed the product on local stock exchanges.
Notable jurisdictions with local spot Bitcoin ETF listings are Brazil, Canada, Hong Kong, Australia, and the United States. Japan is still in the process of approving a Bitcoin ETF product. However, the local regulator Financial Services Agency (FSA) has received applications.
US SEC Recently Approved ETH ETFs
All the while, USA regulators have also approved and listed a number of Ethereum ETFs last week. Franklin Templeton is now working with Japanese banking firm SBI Holdings to capture of untapped Bitcoin ETF market in the region.
The joint venture is also working on digital asset securities. This program will tokenize localized assets such as real estate and government bonds and host it on blockchain networks. SBI Holdings is working alongside a number of foreign firms to offer alternative asset investment products.
Boston Consulting Group and ADDX have projected tokenization to grow to a $16.1 trillion sector by 2030. Franklin Templeton and SBI will establish a digital asset management firm in anticipation for approval of the first Bitcoin spot ETF approval in Japan.
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