Gray Scale GBTC protocol content update: Proposed adjustments to the fee structure and asset custody method

ChainCatcher news, Grayscale has announced the first update to the GBTC protocol, aimed at optimizing the GBTC structure in preparation for the anticipated listing of a Bitcoin spot ETF and to position itself favorably in competition with other applicants like BlackRock. The updates to GBTC involve two proposed amendments to the trust agreement, which will subsequently be submitted for shareholder voting.

The first amendment will allow management fees to be charged daily instead of monthly. A company spokesperson stated that this is a structural adjustment rather than a fee reduction. Grayscale currently charges a 2% management fee on GBTC.

The second amendment will allow assets to be mixed in a consolidated account, which is a core processing mechanism of ETFs, making the creation and redemption of shares smoother. This is also an innovation of Coinbase Custody services.

The document states that these two updates will not impose additional costs on Grayscale shareholders, nor are they necessary for the conversion to an ETF. Shareholders will have 20 days to vote on the proposed updates starting from the submission of the application on Wednesday.