Grayscale has updated their application for a mini-ETF, revealing that it was funded last week, signaling one of the final steps before it becomes available for public trading.
In a filing with the Securities and Exchange Commission (SEC), Grayscale disclosed that on April 29, 2024, they purchased $100,000 worth of shares, known as "Seed Shares," consisting of 10,000 shares at a price of $10 per share. These Seed Shares are expected to be redeemed for cash just before the Initial Distribution.
The mini trust currently holds 63,000 bitcoins out of the 291,802 BTC held in GBTC. It is anticipated to have a significantly lower fee of 0.15%, compared to GBTC's fee of 1.5%.
The assets from GBTC can be transferred to the mini-trust without triggering a tax event, potentially explaining the recent halt in outflows from Grayscale.
Wednesday marked another day of zero outflows from GBTC, a trend observed over the past three months. In fact, there were even inflows recorded, likely driven by the expectation of the mini-ETF offering a lower fee.
While the filing does not specify the fee, it is expected to be included in the final amendment before the launch of the mini-trust.
This recent funding suggests that the mini-ETF could go live in approximately four weeks, potentially disrupting the ETF market.
The consistent outflows from GBTC have been partially responsible for the market correction. With these outflows slowing down this week, some traders may anticipate the correction to be coming to an end.
Despite this, the price of Bitcoin has not reached $67,000, instead dipping to $64,000. While it may not exhibit the same strength as in January, it did show a rapid rise from $57,000.
Furthermore, the distribution from MT Gox is now balanced by a stimulus from FTX, partially mitigating one of the major concerns for bullish investors.
With the changes in fees from GBTC and other market dynamics, the selling pressure may shift, but the future price movement remains uncertain.
May 2024, Cryptoniteuae