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Grayscale Seeks SEC Approval for Mini Bitcoin ETF to Attract Investors

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The world’s largest cryptocurrency operator, Grayscale Investments, is set to introduce a mini Bitcoin spot exchange-traded fund (ETF) with lower commissions. This move is seen as a strategic step to reclaim the market dominance from competitors like BlackRock and Fidelity.

According to Reuters and other sources, on the 13th, Grayscale applied to the U.S. Securities and Exchange Commission (SEC) for a split listing of its Bitcoin spot ETF.

This decision comes from the perception that investors have snubbed the existing Bitcoin spot ETFs due to their higher commissions than competitors’ ETFs. Grayscale plans to split a certain amount of Bitcoin from its spot ETF and list it as a mini Bitcoin spot ETF.

According to cryptocurrency research firm BitMEX Research, Grayscale’s Bitcoin spot ETFs have seen an outflow of approximately $11.05 billion since January. In contrast, BlackRock and Fidelity’s spot ETFs have recorded inflows of roughly $10.59 billion and $6.37 billion, respectively.

The U.S. Securities and Exchange Commission (SEC) had previously approved the exchange listing and trading of Bitcoin spot ETFs on January 10th. Following this decision, 11 Bitcoin spot ETFs began trading on the 11th. Products from BlackRock, Fidelity Investments, Ark Investments, Invesco, WisdomTree, Bitwise Asset Management, Valkyrie, and Grayscale Investments are currently trading.

Meanwhile, according to U.S. digital asset specialist media CoinDesk on the 11th, Bitcoin surpassed the global silver market in terms of market capitalization after reaching a record high. For the first time, Bitcoin broke through the $72,000. As a result, its market capitalization climbed to $1.42 trillion, surpassing silver ($1.387 trillion, 9th place) and ranking 8th among major global investment assets.

theguru
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