Grayscale, a digital asset manager, has submitted an application to the SEC for a new product known as the Bitcoin Mini Trust, which aims to utilize the $BTC ticker if granted regulatory approval. The proposed trust will be initiated with shares from Grayscale's flagship fund, GBTC, which currently holds assets exceeding $27 billion.

Although specific details regarding the fee structure of the potential ETF have not been disclosed publicly, reports suggest that it is poised to compete with existing low-cost ETF options. Notably, the creation of the Bitcoin Mini Trust from GBTC shares is anticipated to occur without triggering tax implications for GBTC shareholders.

Grayscale envisions launching the Bitcoin Mini Trust with a significantly reduced fee structure if approved. This move is expected to benefit current GBTC investors by offering a more cost-effective investment vehicle while maintaining exposure to Bitcoin through ownership of both $GBTC and $BTC shares.

The introduction of the Bitcoin Mini Trust follows significant outflows from GBTC, totaling over $11 billion since the emergence of nine spot Bitcoin ETFs in the market. Notable competitors like BlackRock's IBIT with a 0.12% annual fee and Fidelity's FBTC offering zero fees until July have intensified the competition in the ETF space. In contrast, GBTC currently imposes the highest fees among all Bitcoin spot ETF products at 1.5%.

Grayscale's initiative to launch the Bitcoin Mini Trust aligns with its broader objective of enhancing accessibility to digital asset investments and expanding the availability of Bitcoin exposure to a wider investor base. The SEC filing marks a pivotal milestone in establishing the Bitcoin Mini Trust as an independent entity separate from GBTC within Grayscale's investment offerings.

At present, Bitcoin is trading around $70,000, reflecting a 3% decline for the day.