Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Crypto asset manager Valkyrie Investments wants to become the sponsor and manager of the Grayscale Bitcoin Trust (GBTC), the company said in a blog post this week.
Valkyrie, one of Grayscale’s rivals, previously launched a bitcoin trust and a bitcoin-related exchange-traded-fund (ETF) in 2021. As part of their plan to sponsor GBTC, the world’s largest bitcoin fund, the Tennessee-based company also announced the launch of a new fund, the Valkyrie Opportunistic Fund, LP that seeks to take advantage of GBTC’s discount to the value of its underlying bitcoin, the company said.
Valkyrie’s plan would be a tall order, considering that GBTC alone has over $10 billion in assets and Valkyrie only handles roughly $180 million in total assets.
“We understand that Grayscale has played an important role in the development and growth of the bitcoin ecosystem with the launch of GBTC, and we respect the team and the work that they have done,” Valkyrie said. “However, in light of recent events involving Grayscale and its family of affiliated companies, it is time for a change.”
Grayscale and CoinDesk are both owned by the Digital Currency Group.
In its proposal, Valkyrie said it wants to facilitate GBTC redemptions at net asset value (NAV) for investors through a Regulation M filing. It also proposes to lower the fees to 75 basis points as opposed to the current 200 basis points, and to offer redemptions in both bitcoin and cash.
Earlier this month, GBTC shares hit a record-high discount rate of over 50% relative to the price of bitcoin (BTC). GBTC’s recent struggles were triggered by the Security and Exchange Commission’s (SEC) reiteration of its reasons for denying Grayscale Investment’s application to convert GBTC into a spot bitcoin ETF. Grayscale called the initial denial “arbitrary, capricious and discriminatory.”
Grayscale did not immediately return a request for comment.
Read more about
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
