Grayscale Takes Steps Toward Bitcoin ETF with Three Amendments for Bitcoin Trust
In Brief
Grayscale announced amendments to its Grayscale Bitcoin Trust, taking a step closer to the potential spot Bitcoin ETF.
Leading asset management firm Grayscale has announced amendments to its Grayscale Bitcoin Trust (GBTC) for the first time since 2018. This move brings the Grayscale Bitcoin Trust closer to the potential transformation into a spot Bitcoin exchange-traded fund (ETF).
Grayscale plans to lower the GBTC management fee from the current 2% to 0.7%, aligning it more closely with the fees of other firms awaiting approval for spot Bitcoin ETFs, which typically range between 0.7% to 1%, according to Matrixport analysts.
Additionally, Grayscale plans a structural refinement, facilitating the transition of fee collection from a monthly to a daily basis. The change indicates an intention of the firm to align GBTC operations with industry standards.
Another amendment includes the adoption of an omnibus account format for asset mingling. This will allow the creation and redemption of shares, a core process for ETF operations. As a part of Coinbase Custody’s services, this approach is already adopted by other spot ETF applicants, such as BlackRock’s iShares product.
New Amendments Will be Implemented Efficiently
Grayscale states that proposed changes will be implemented without incurring additional expenses for its shareholders and are not mandatory for converting to an ETF. Shareholders will be given a 20-day period from the filing date to vote on the updates.
The firm emphasized that amendments are part of its regular business operations, and GBTC is prepared to transition to a spot Bitcoin ETF on the NYSE Arca exchange upon receiving regulatory approvals.
With the strategic amendments, Grayscale aims to enhance its competitive stance in the evolving Bitcoin ETF market, ensuring the potential success and acceptance of Grayscale’s GBTC in the new ETF framework.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
