Crypto Investment Firm Valkyrie Wants To Take Over Grayscale Bitcoin Trust, Says It’s Time For A Change

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Crypto asset manager Valkyrie Investments says it is interested in sponsoring and managing Grayscale’s publicly traded bitcoin (BTC) fund.

In a new statement, Valkyrie co-founder Steve McClurg announces the company’s proposal to take over the Grayscale Bitcoin Trust (GBTC) as shares of the world’s largest Bitcoin fund trade below 45% of the price. in cash from BTC.

According to McClurg, his new Valkyrie Opportunistic Fund wants to take advantage of GBTC’s discounted price relative to Bitcoin’s underlying value.

As the fund increases its holdings of GBTC, we are very interested in realizing the true value of the underlying bitcoin for our investors and will actively pursue this goal on their behalf.

The crypto executive also offers a plan to improve the current management of GBTC, which includes allowing investors to redeem their shares at a fair price without delays or obstacles, in addition to reducing the current fee by 200 basis points. at 75 basis points and to offer share buybacks in Bitcoin and cash.

Our proposal represents a significant improvement over GBTC’s current management… We are committed to putting the interests of GBTC shareholders first, and we have the experience and expertise to do so effectively.

Valkyrie’s proposal comes as Grayscale’s parent company Digital Currency Group faces liquidity issues after one of its subsidiaries, crypto lender Genesis, suspended withdrawals due to bankruptcies that hit the industry of crypto last year. According to McClurg, the situation calls for a change in the management of GBTC.

“In light of recent events involving Grayscale and its family of affiliates, it’s time for a change. Valkyrie is the best company to run GBTC to ensure its investors are treated fairly.

In December, Grayscale reportedly said it was considering reselling some of its capital to investors if it failed to obtain U.S. Securities and Exchange Commission approval to convert GBTC into an exchange-traded fund. .

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