Grayscale's Bitcoin Mini Trust Aims to Stem GBTC Losses

Grayscale has filed for a new Bitcoin ETF product, the Grayscale Bitcoin Mini Trust, in an effort to offset the outflows from its Grayscale Bitcoin Trust (GBTC). The new fund will be seeded as a "Spin-Off" of GBTC, diverting some of its Bitcoin stash, and existing GBTC shareholders will receive a proportional number of BTC shares. Analysts believe this move aims to address investors' preference for lower fees offered by competitors, as Grayscale continues to charge 1.5% compared to 20-30 basis points by others. Lowering fees would impact Grayscale's revenue, so the "Spin-Off" approach is seen as a middle ground to attract new investors while maintaining revenue.