Valkyrie Investments announced December 28th Statement that it has submitted a proposal to become the sponsor and manager of Grayscale’s Bitcoin Trust.
Grayscale BTC (GBTC) is one of the largest Bitcoin investment funds, currently worth 643,572 BTC ($10.6 billion). But the fund also has problems. In December, GBTC traded 50% below the value of Bitcoin held.
Valkyrie has proposed a plan to improve Grayscale BTC with various changes. He said he aims to provide The company also aims to reduce GBTC fees and offer redemption in both Bitcoin and cash.
The company also said it would launch a Valkyrie Opportunistic Fund LP to capitalize on the discrepancies between GBTC and NAV.
Valkyrie said the proposal would “significantly improve GBTC’s current management and called on Grayscale to ‘carefully consider’ it.
However, grayscale has its own plans. The company intends to increase the fund’s price by converting his GBTC into his ETF, but past attempts have been foiled after it was rejected by the US SEC. According to recent information, Grayscale has hinted at other possibilities, including a tender offer for up to 20% of its outstanding shares. Wall Street Journal report.
Valkyrie today noted that it has a “track record of success” with its own Bitcoin Trust, which will operate in daily liquidity from January 1, 2021.
The company added that it has launched several Bitcoin-related ETFs. The company is one of his three companies to launch the first Bitcoin futures ETF in late 2021, along with VanEck and ProShares. Other companies have since launched Bitcoin futures ETFs.
In the past few weeks, Valkyrie has also been in the news for a different reason. Revealed to be one.
It is unclear whether Sun has any direct influence on Valkyrie. And if so, it’s unclear if there’s any reason to encourage or discourage working with Grayscale.
