Grayscale’s Bitcoin Trust (GBTC), the second-largest spot bitcoin exchange-traded fund (ETF) by assets, lost 11% of its value Tuesday. But investors shouldn’t worry, Grayscale said.
The decline was largely expected, as 10% of the bitcoin held by the fund was spun off to create the Grayscale Bitcoin Mini Trust. The additional drop could be attributed to changes in bitcoin’s price, which trended about 2% lower in recent trading.
The Grayscale Bitcoin Trust existed as a bitcoin investment fund even before the U.S. Securities and Exchange Commission approved spot bitcoin ETFs in January this year. Once that approval came, the existing Grayscale fund converted to a spot bitcoin (BTCUSD) ETF. However, it witnessed massive outflows, mostly on account of the comparatively higher fees it charged.
The Grayscale Bitcoin Mini Trust is a new spot bitcoin ETF that comes with lower fees and offers smaller denominations than the Grayscale Bitcoin Trust.
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