Grayscale Takes Steps Toward Bitcoin ETF with Three Amendments for Bitcoin Trust

by Alisa Davidson

Published: November 30, 2023 at 6:10 am Updated: November 30, 2023 at 6:10 am

by Victor Dey

Edited and fact-checked:
November 30, 2023 at 6:10 am

In Brief

Grayscale announced amendments to its Grayscale Bitcoin Trust, taking a step closer to the potential spot Bitcoin ETF.

Grayscale Unveils Three Amendments to Bitcoin Trust, Nearing Bitcoin ETF Transformation

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 is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson