Grayscale GBTC fell more than 11%! Bloomberg James Seyffart: split into mini trusts

This site (120BtC.coM): Grayscale Bitcoin Trust GBTC fell more than 11% yesterday, which once caused market panic. Even Bloomberg analyst James Seyffart jumped out to explain that it was because GBTC split 10% into mini Trusted by BTC.

GBTC split 10% into Mini Trust BTC

Grayscale applied to the SEC for the Grayscale Bitcoin Spot ETF (Grayscale Bitcoin Mini Trust, BTC) in March, but it was only approved recently. Yesterday was the record day for the GBTC split. With the creation of the Grayscale Bitcoin Mini Trust (BTC), 10% of the underlying Bitcoins of the Grayscale Bitcoin Trust (GBTCTrust) were split. As a result, the net asset value of GBTC stock fell by 10% from the previous day (without taking into account the rise and fall of Bitcoin prices).

As explained in the figure below, if GBTC originally cost 10 yuan per share, Mr. A bought 10 shares, and the total investment amount was US$100. After the split, he will hold GBTC of 9 yuan per share and BTC of 1 yuan per share, and the total investment amount will still be US$100 (regardless of the rise and fall of the Bitcoin price). Mr. A does not need to do anything in this process, and the new BTC shares will enter his trust account within a few days.

BTC fee dropped to 0.15%

The time-honored Grayscale Bitcoin Trust GBTC fee is 1.5%, which is much higher than the 0.25% fee of most competitors. Therefore, it faces continued capital outflows after the listing of the Bitcoin spot ETF. Dilemma. This time, with the launch of the mini-version Bitcoin spot ETF BTC, the fee was significantly reduced to 0.15% in an attempt to regain the favor of investors.

GBTC’s current asset size is US$16 billion. Since the listing of the Bitcoin spot ETF in January, US$18.9 billion has flowed out, and more than half of the funds have been lost. Will the listing of the mini version of BTC, coupled with price reduction promotions, help Grayscale Trust’s assets recover?

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