Grayscale plans to adjust GBTC fee structure and asset custody methods to prepare for the listing of spot Bitcoin ETF

A document submitted on Wednesday showed that Grayscale updated the GBTC protocol for the first time since 2018 to optimize the GBTC structure, prepare for the expected listing of a spot Bitcoin ETF, and improve its competitiveness against other applicants such as BlackRock. GBTC’s update involves two proposed changes to the trust agreement, which will later be submitted to a shareholder vote. The first modification would allow the management fee to be charged from a monthly basis to a daily basis. A spokesman for the company said this was a structural change rather than a cost reduction and had not yet been finalized. Grayscale currently charges a 2% management fee for GBTC. According to an analyst report from Matrixport, other spot Bitcoin ETF applicants charge management fees between 0.7% and 1%. The second modification will allow assets to be mixed in a comprehensive account, which is the core processing mechanism of ETFs, will make the creation and redemption of shares smoother, and is also an innovation of Coinbase Custody service. Coinbase Custody will also be used by BlackRock’s iShares product, as well as some other spot ETF applicants. The above updates will not result in additional costs for Grayscale shareholders and are not required for GBTC to be converted into an ETF, the filing said. Shareholders have 20 days from Wednesday's filing to vote on the proposed update. (CoinDesk)