Valkyrie Investments wants to take control of Grayscale Bitcoin Trust and reveals its plans

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The state of the Grayscale Bitcoin Trust (GBTC), the largest BTC trust in the world, has raised concerns among investors in the space. With such a significant discount to net asset value (NAV), there have been discussions about where the fund is heading from here and whether it is in trouble. Valkyrie Investments has now joined the conversation but is going down a totally unexpected path.

Valkyrie Wants Grayscale Bitcoin Trust

In a statement released on December 28, Valkyrie Investments co-founder and CIO Steven McClurg revealed the firm’s interest in taking over management of Grayscale Bitcoin Trust. The statement highlights the unique challenges GBTC faces and casts the Valkyrie team as the best to manage the fund.

He points to his experience running his own Bitcoin fund, which he says has operated with daily cash since its launch a year ago. In addition, he also points to his experience with his multiple publicly traded BTC ETFs that launched in 2021 as a good reason why this would be a good choice.

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 they have done, the statement said. However, 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.

The company also announced a brand new fund called the Valkyrie Opportunistic Fund, LP which it says was created to help investors take advantage of the GBTC discount on NAV. 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, McClurg said.

GBTC sells at $8.11 | Source: Grayscale Bitcoin Trust (BTC) at TradingView.com The Roadmap to Success

Valkyries’ statement also included its plan to actually improve the management of the Grayscale Bitcoin Trust if it were to take over. These were divided into three points.

The first was that it planned to facilitate orderly redemptions for investors at NAV whenever they wanted through an M settlement filing. According to the statement, this would allow investors to redeem shares without delay and at a fair price.

Next is the plan to reduce the fees associated with the fund. Valkyrie wants a reduction of more than 50% in fees to adapt to industry best practices. As such, it plans to cut fees from 200 basis points to 75 basis points.

Last but not the fact that Valkyrie wants to honor investors’ stock redemptions in BTC and cash. His reasoning behind this was that he believes it gives investors greater flexibility and choice when it comes to redeeming their shares.

McClurg closes the statement by calling for the statement to be taken into account. We are committed to putting the interests of GBTC shareholders first, and we have the experience and expertise to do so effectively, the co-founder said.

GBTC’s discount to NAV remains elevated despite some recovery at the end of 2022. It had peaked at 48.57% on Dec. 16, but by the end of the day on Friday, Dec. 30, the discount GBTC had fallen to 45.17%.

Featured image from Bloomberg, chart from TradingView.com

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