Grayscale submits application for compact Bitcoin ETF.

Grayscale has submitted a request to register a new “mini” version of its Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). The new trust, called the Grayscale Bitcoin Mini Trust, will operate independently of the main GBTC fund and will be listed on the New York Stock Exchange if approved. Existing GBTC shareholders will receive shares of the new Bitcoin trust, as GBTC will also contribute an undisclosed amount of Bitcoin to the trust. The goal of the new trust is to provide GBTC investors with tax-free exposure to Bitcoin, as stated in a recent post by Bloomberg ETF analyst James Seyffart. The filing was made on March 11, the same day that Bitcoin reached a new all-time high of $71,415. VanEck, an asset manager, also announced that it will waive all sponsor fees for the first $1.5 billion of funds in its Bitcoin Trust ETF until March 31, 2025. Meanwhile, the SEC’s lack of communication regarding Ether-based ETFs is seen as a negative sign for potential approval by May. Bloomberg ETF analyst Eric Balchunas has downgraded the chances of an Ether ETF approval to 35%.