- Grayscale Investments is launching a new Bitcoin fund after its flagship Grayscale Bitcoin Trust saw billions in outflows recently amid declining crypto prices.
- The new Grayscale Bitcoin Mini Trust aims to provide a lower-priced, more accessible Bitcoin investment option compared to GBTC.
- Grayscale plans to seed the Mini Trust with Bitcoin pulled from GBTC to avoid having to immediately buy more Bitcoin to launch the new fund.
Grayscale Investments plans to launch a new Bitcoin fund as its flagship product sees billions in outflows. The asset manager aims to attract investors back to crypto funds with a more accessible offering.
Grayscale’s Flagship Bitcoin Fund Bleeds Billions
Grayscale Investments’ Grayscale Bitcoin Trust (GBTC) has seen more than $11 billion exit the fund recently. The GBTC has been the world’s largest Bitcoin fund, but it is now hemorrhaging assets. The outflows come as the price of Bitcoin has slumped, leading investors to flee crypto funds.
New Mini Bitcoin Fund in the Works
In response to GBTC’s declines, Grayscale submitted plans for a new Grayscale Bitcoin Mini Trust. The Mini Trust would directly hold Bitcoin and trade under the ticker BTC. The Mini Trust aims to provide an alternative way to invest in crypto amid the struggles of GBTC.
Grayscale Would Seed Mini Trust with GBTC Bitcoin
To launch the Mini Trust, Grayscale plans to seed it with Bitcoin pulled from its $28 billion GBTC fund. This would allow the asset manager to offer the new fund without having to immediately buy more Bitcoin. The Mini Trust would offer shares at a lower price point than GBTC.
Market Conditions Challenge Crypto Funds
The moves by Grayscale come as crypto funds face hurdles. Outflows from GBTC and plunging crypto prices present challenges. Other firms like Invesco have also struggled to launch spot Bitcoin funds. But asset managers remain hopeful better market conditions will revive interest in crypto investment vehicles.
