Fund transitions have officially started for the Grayscale Bitcoin Mini Fund (BTC), which was approved by the US Securities and Exchange Commission (SEC) last week and is now certain to open for trading tomorrow after the final details are finalised.

The transition behind the 10% decline…

While so details are being prepared for the fund, which will be traded under the BTC abbreviation, Grayscale’s main Bitcoin fund GBTC fell 10 per cent before the US markets opened today. ETF expert James Seyffart said that behind this decline, rather than a sales-induced depreciation, there were share transitions of Grayscale.

The mini fund, which has the lowest transaction fee rate of 0.15% among ETFs, is also automatically transferred to GBTC holders. For example, if the value of one GBTC share is $10 and the investor holds 10 GBTC shares totalling $100, 1 in 10 of each share is transferred to this mini fund.

Therefore, the GBTC investor has 10 mini funds of 1 dollar each. However, the GBTC share value in the investor’s hands decreases from 100 to 90 dollars. The investor’s total asset of $100 is protected.

This automatic transition from GBTC to the mini-BTC fund also brought a decrease in the fund at the same rate.

The same happened in the Mini-Ether fund

As it is known, Grayscale made the same transition in the Ether fund. The 10% shares of ETHE holders, Grayscale’s main Ether fund, were transferred to the mini-Ether fund on 18 July. In GBTC, this situation was on hold for execution for today.

Grayscale’s mini-Ether fund, like the mini-Bitcoin fund, stands out as the Ether ETF with the lowest transaction fee (0.15%).