• Valkyrie Investments has proposed to become the sponsor and manager of Grayscale’s Bitcoin Trust.
• Valkyrie aims to improve upon Grayscale BTC with various changes, including offering orderly redemptions at net asset value (NAV), reducing fees and offering redemptions in both Bitcoin and cash.
• Valkyrie is also launching the Valkyrie Opportunistic Fund LP, which will take advantage of the discrepancy between GBTC and the NAV.
Valkyrie Investments recently announced a proposal to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC). If approved, the company plans to improve upon the operation of the fund in various ways.
The company intends to offer orderly redemptions at net asset value (NAV) so customers can withdraw their funds at a fair value without any issues. Valkyrie also plans to reduce the fees associated with GBTC, as well as offer redemptions in both Bitcoin and cash.
Valkyrie believes that their proposal is a „significant improvement over the current management of GBTC“ and has asked Grayscale to „consider it carefully.“
Grayscale, however, has its own plans. The firm intends to convert GBTC into an ETF to raise the price of the fund, though its past attempts to do so have failed due to rejections from the U.S. SEC. Grayscale has also suggested other possibilities, such as a tender offer for up to 20% of outstanding shares, according to recent WSJ reports.
In addition to their proposal, Valkyrie is launching the Valkyrie Opportunistic Fund LP. The fund will take advantage of the discrepancy between GBTC and the NAV to gain profits.
Valkyrie Investments believes that their proposal and fund will be beneficial for all involved, and will help improve the operation of GBTC. It remains to be seen if Grayscale will accept their proposal, or if the company will continue to pursue its own plans.
