Grayscale,
the
manager
of
the
Grayscale
Bitcoin
Trust
(GBTC),
is
updating
the
trust’s
agreement
for
the
first
time
since
2018,
according
to
a
filing
on
Wednesday.
The
aim
is
to
optimize
GBTC’s
structure
for
an
anticipated
uplisting
to
a
spot
bitcoin
exchange-traded
fund
(ETF)
and
level
the
playing
field
when
it
comes
to
other
applicants
such
as
asset
management
giant
BlackRock.
The
GBTC
update,
which
will
be
put
out
for
shareholder
vote,
involves
two
proposed
modifications
to
the
trust
agreement.
The
first
allows
fees
–
which
had
been
collected
by
Grayscale
on
a
monthly
basis
–
to
be
payable
daily.
This
is
a
structural
tweak
and
not
part
of
any
type
of
fee
reduction
–
something
Grayscale
has
committed
to,
but
which
has
not
been
finalized
as
of
yet,
a
company
spokeswoman
said.
Grayscale
currently
charges
a
2%
management
fee
for
GBTC;
the
typical
range
for
firms
awaiting
approval
for
spot
bitcoin
ETFs
is
0.7%-1%,
according
to
an
analyst
report
by
Matrixport.
The
second
update
allows
assets
to
be
commingled
in
an
omnibus
account
manner,
which
will
enable
a
more
frictionless
creation
and
redemption
of
shares
–
the
core
processing
mechanism
of
the
ETF.
This
is
an
innovation
comprising
part
of
Coinbase
Custody’s
service.
The
BlackRock
iShares
product,
along
with
a
number
of
other
spot
ETF
applicants,
will
also
employ
Coinbase
Custody.
Analysts
expect
the
U.S.
Securities
and
Exchange
Commission
(SEC)
will
likely
approve
several
spot
bitcoin
(BTC)
ETFs
in
quick
succession.
This
makes
for
a
febrile
atmosphere
among
applicants,
especially
since
the
winner
in
this
race
is
expected
to
have
a
sizable
first-mover
advantage
in
hoovering
up
a
large
portion
of
everyday
investors.
“Today,
Grayscale
has
outlined
proposed
amendments
to
GBTC’s
Trust
Agreement
that
are
intended
to
provide
operational
efficiencies
that
we
believe
are
beneficial
to
both
Grayscale
and
GBTC,”
a
Grayscale
spokeswoman
said
via
email.
“Importantly,
this
is
in
our
normal
course
of
business,
and
GBTC
remains
ready
to
uplist
as
a
spot
Bitcoin
ETF
to
NYSE
Arca
upon
appropriate
regulatory
approvals.”
The
amendments
will
come
at
no
extra
cost
to
Grayscale
shareholders
and
neither
are
essential
to
make
the
conversion
to
an
ETF,
the
filing
said.
Shareholders
have
20
days
from
Wednesday’s
filing
to
vote
on
the
update
proposals.
