Kenne Michael 
For the first time since 2018, asset manager Grayscale has made a few amendments to the agreement governing its Grayscale Bitcoin Trust (GBTC), according to a filing on Wednesday, Nov. 29.
In most cases, this will aid Grayscale in preparing for the Bitcoin ETF launch and remain competitive with other firms.
Grayscale Pushing for a spot Bitcoin ETF
The objective is to optimize the framework of GBTC in anticipation of a possible shift to a spot Bitcoin exchange-traded fund (ETF) and to guarantee fair competition with other applicants, which may include the renowned asset management firm BlackRock.
However, the shareholder-approved proposed amendments to the GBTC update consist of two significant modifications to the trust agreement.
Furthermore, this occurrence transpires just six days after Grayscale amended its Bitcoin ETF filing.
Among the two suggested modifications, the initial one allows for the daily collection of fees instead of the previous monthly collection.
According to a company spokesperson, this modification is a structural refinement and does not result in reduced fees, as Grayscale has committed to do.
However, the matter has yet to be finalized.
Grayscale currently levies a 2% management fee on GBTC, whereas firms awaiting approval for spot Bitcoin ETFs generally incur expenses ranging from 0.7% to 1%, according to an analyst report by Matrixport.
The second update facilitates the consolidation of assets into a comprehensive account structure, thereby optimizing the process of issuing and redeeming shares.
This function is essential for the operation of the ETF.
This novel method is incorporated into the Coinbase Custody service.
Coincidentally, many spot ETF applicants, including the BlackRock iShares product, will also utilize Coinbase Custody.
Implementing the Amendments
Grayscale will implement the proposed amendments at no additional cost to its shareholders.
According to the filing, they are also not required for the conversion to an ETF.
Commencing from the filing date on Wednesday, shareholders are granted 20 days to exercise their voting rights regarding the proposed updates.
A Grayscale spokesperson informed coinDesk via email:
“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. 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.”
In the midst of all the activity surrounding Bitcoin ETF, the GBTC share price has increased substantially by 278% in 2023.
This has contributed to the reduction of the GBTC discount and the spot BTC price to its lowest in two years.