GBTC net outflow leaves its mark in history! Grayscale re-applies for mini version of ETF code BTC

Grayscale has submitted an S-1 document to the SEC on March 12 to register the Grayscale Bitcoin Spot ETF (Grayscale Bitcoin Mini Trust, BTC), which will be launched on Listed on the New York Stock Exchange.

Grayscale launches mini ETF, codenamed "BTC"

The document states that although BTC will operate independently from GBTC, existing GBTC holders will automatically receive A certain percentage of BTC is split and distributed into smaller BTCs.

The document did not disclose the split ratio, but Grayscale will submit another 14C document in the future to further explain the details of the terms of the planned split.

The document states that regarding the split, GBTC shareholders do not need to provide consent, authorization, approval or power of attorney, nor do they need to pay any consideration, exchange or give up existing GBTC shares. On the distribution date, they will automatically receive their trust shares without taking any additional action.

Bloomberg ETF analyst James Seyffart expressed extreme uncertainty about the timetable for approval, believing that approval may need to be completed within 60 to 270 days. On January 9, he speculated that Grayscale might use its holdings’ stock symbol “BTC” to issue a smaller Bitcoin ETF.

GBBTC net outflow history remains famous

Another analyst Eric Balchunas pointed out that in the past 15 years, GBTC’s net outflow ranked second among all ETFs, totaling US$10.5 billion, only Second to BlackRock's emerging markets index EEM, which reached $12.3 billion.

What’s interesting is that the mini version of ETF was invented by BlackRock. At that time, BlackRock issued a mini version of IEMG for EEM, and Grayscale is now trying to issue a mini version of GBTC.

James Seyffart pointed out that there have been approximately US$11 billion in outflows since GBTC was converted to a spot ETF, but the asset size of GBTC is still roughly the same as before the conversion (28.6 billion vs. US$28 billion), although GBTC has outflowed approximately US$11 billion. 35% shares.

This is mainly due to the sharp increase in the price of Bitcoin. The bull market dividend has completely allowed Grayscale to maintain the illusion of a flat asset scale.

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