SEC Greenlights Grayscale Bitcoin Mini Trust: What You Need to Know

SEC Approves Grayscale Bitcoin Mini Trust

On July 26, 2024, the U.S. Securities and Exchange Commission (SEC) approved the Grayscale Bitcoin Mini Trust. However, the trust is still pending the effectiveness of its S-1 registration statement before it can start trading.

Details of the Approval

The SEC specifically sanctioned the 19b-4 form for the Grayscale Bitcoin Mini Trust, which will trade under the ticker symbol BTC. This mini trust is designed as a “spin-off” of the existing Grayscale Bitcoin Trust (GBTC). New shares of the mini trust will be allocated to existing GBTC shareholders, who will receive a portion of Bitcoin contributed by GBTC to the mini trust.

According to an SEC document, the approval aims to ensure:

• Fair disclosure of information necessary for pricing the trust's shares.
• Prevention of trading when transparency cannot be assured.
• Protection of non-public information about the trust’s portfolios.
• Orderly markets for the shares of the trusts.

Next Steps for Grayscale

A Grayscale spokesperson noted, “Grayscale awaits the effectiveness of BTC's registration statement on Form S-1.” Once approved, the mini trust will operate as a U.S. spot Bitcoin ETP, alongside GBTC and other similar products. Grayscale has promised to update the public on the listing date for the Bitcoin Mini Trust on NYSE Arca.

This development comes over seven months after the SEC approved 11 spot Bitcoin ETFs, which have collectively attracted millions in investments. The agency also made headlines earlier this year by approving spot Ethereum ETFs. Notably, Grayscale was granted approval for both a spot Ethereum ETF and a spot Bitcoin ETF.

Disclaimer: This article is intended for informational purposes only and should not be considered legal, tax, investment, or financial advice.