• Valkyrie Investments has proposed to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC).
• Valkyrie plans to offer orderly redemptions at net asset value, reduce fees, and offer redemptions in both Bitcoin and cash.
• Grayscale intends to convert GBTC into an ETF, though its past attempts to do so have been rejected.
Valkyrie Investments recently announced its proposal to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC). GBTC is the largest Bitcoin investment fund, valued at 643,572 BTC ($10.6 billion) at the time of the announcement. However, the fund has been facing trouble recently, as it was trading at 50% less than the value of the Bitcoin it holds.
Valkyrie provided details of its proposal, which seeks to improve upon the operation of GBTC. The company aims to offer orderly redemptions at net asset value (NAV), allowing customers to withdraw their funds at a fair value. This would ensure that customers do not encounter any issues when trying to withdraw their funds. Additionally, Valkyrie plans to reduce GBTC fees, and offer redemptions in both Bitcoin and cash.
The company also said that it is launching the Valkyrie Opportunistic Fund LP, which will take advantage of the discrepancy between GBTC and the NAV. Valkyrie asked Grayscale to consider its proposal, which it believes is a “significant improvement” over the current management of GBTC.
Grayscale has its own plans for GBTC. The firm intends to convert the fund into an ETF, though its past attempts to do so have been rejected by the U.S. SEC. Grayscale has also suggested other possibilities, including a tender offer for up to 20% of outstanding shares.
Valkyrie’s proposal comes at an interesting time for Bitcoin, as the cryptocurrency continues to surge to new highs. It will be interesting to see how Grayscale responds to Valkyrie’s proposal, and whether or not the company will be able to improve upon the operation of GBTC. Regardless, it is clear that the Bitcoin investment fund has a bright future ahead.