Asset manager Grayscale Investments is launching a second exchange-traded fund (ETF) that will track the spot price of Bitcoin (BTC).
The second fund is being launched roughly two months after the firm’s flagship Grayscale Bitcoin Trust (GBTC) converted to an ETF.
Called the “Grayscale Bitcoin Mini Trust,” the new ETF will trade under the ticker symbol “BTC,” according to a filing with the U.S. Securities and Exchange Commission (SEC).
The company is planning to spin-off part of its larger Grayscale Bitcoin Trust to initially seed the new ETF, the regulatory filing shows.
Grayscale is positioning the second Bitcoin ETF as a mini version of its larger flagship fund. This is a common practice throughout the ETF industry.
Invesco’s (IVZ) QQQ Trust Series I that tracks the Nasdaq 100 index is an example of an ETF that trades alongside a smaller version of itself.
Mini ETFs tend to charge lower fees than the flagship versions they’re based on as they aim to appeal to buy-and-hold investors.
The Grayscale Bitcoin Trust has seen billions of dollars in outflows since its conversion to an ETF on Jan. 11 of this year.
Rival Bitcoin ETFs that charge lower fees than the Grayscale Bitcoin Trust’s 1.50% expense ratio have been attracting investor capital, especially ETFs managed by BlackRock (BLK) and Fidelity.
Spot Bitcoin ETFs that track the price of the largest cryptocurrency are surging in popularity, particularly among retail investors.
Bitcoin is currently trading at a record high of $73,250 U.S., having risen 66% so far in 2024.
