tl;dr
Grayscale's Bitcoin ETF (GBTC) saw a drastic 11% drop in value during the trading session, coinciding with the record date for the spinoff of its new Bitcoin Mini Trust. The decline reflects investor reaction to the forthcoming transfer of a portion of GBTC's BTC holdings to the newly established tr...
Grayscale's Bitcoin ETF (GBTC) plunged 11% in trading session amid record date for spinoff of new Bitcoin Mini Trust.
GBTC price slumped 11.42% to $52.87, recording $54.3 million negative flow on Monday; expected shift of assets into Bitcoin Mini Trust.
Grayscale's Bitcoin Mini Trust debuts as spinoff of GBTC, involving transfer of BTC holdings, streamlining market operations and awaiting SEC's final approval for public offering.
The SEC has greenlit Grayscale's Bitcoin Mini ETF, which will debut as a spinoff of GBTC and involve the transfer of BTC holdings to the new trust.
Grayscale's Bitcoin ETF (GBTC) saw a drastic 11% drop in value during the trading session, coinciding with the record date for the spinoff of its new Bitcoin Mini Trust.
The decline reflects investor reaction to the forthcoming transfer of a portion of GBTC's BTC holdings to the newly established trust. The price fell to $52.87, with accelerated outflows totaling $54.3 million. Analysts anticipate the commencement of BTC trading pending final SEC approvals.
Shareholders of record will receive a one-for-one distribution of new shares in the Bitcoin Mini Trust based on their current GBTC holdings.
According to Yahoo Finance, the GBTC price slumped 11.42% to $52.87 in the trading session on Tuesday, July 30. This comes amid accelerated outflows from the Grayscale Bitcoin ETF as it recorded a $54.3 million negative flow on Monday.
James Seyffart, a Bloomberg analyst, provided insight into the mechanics of the spinoff. He clarified that the 11% value decline in GBTC reflects the anticipated shift of assets into the Bitcoin Mini Trust. Seyffart emphasized the importance of the record date, which is today, and indicated that trading for BTC is expected to commence tomorrow, pending final approvals from the SEC.
The new fund, with the ticker BTC, is set to debut as a spinoff of GBTC, fueling anticipations in the cryptocurrency market. The transfer involves GBTC shifting a certain percentage of its Bitcoin holdings to the new trust, effectively distributing new shares of BTC to GBTC shareholders. This distribution aims to streamline market operations and improve pricing accuracy for the trust’s shares.
The Grayscale Bitcoin Mini Trust will follow a similar management fee structure as the Grayscale Ethereum Mini Trust. Hence, it set a nominal fee set at 15 basis points.
Currently, the record date for the initial distribution of Bitcoin Mini Trust shares is established for today, July 30, 2024. Thereafter, the 10% distribution is expected to occur the following day. Grayscale’s BTC ETF shareholders of record as of the close of business today will receive a one-for-one distribution of new shares in the Bitcoin Mini Trust.