Valkyrie Ready To Fund Grayscale Bitcoin Trust In Crisis

Key Points:

• Valkyrie claimed to have a proposal for the floundering Grayscale Bitcoin Trust run by Digital Currency Group and that it is prepared to take over the role of sponsor and manager for the fund.
• By the end of 2021, it launched publicly traded Bitcoin-related ETFs and has a proven track record of working with and valuing its partners and investors.
• The company put forth important changes it would make to the management of GBTC, namely enabling investors to redeem GBTC at net asset value through a Regulation M filing.

Valkyrie Investments said it has a proposal for Digital Currency Group’s struggling Grayscale Bitcoin Trust and is ready to become a sponsor and manager of the fund.

Valkyrie has a proven track record of success in the realm of digital asset management. Its Bitcoin Trust has operated with daily liquidity since its inception on January 1, 2021. The company said:

“As a registered investment advisor and trusted investment manager with extensive experience in the world of Bitcoin and cryptocurrency, our company is uniquely qualified to take on this role.”

It debuted publicly traded Bitcoin-related ETFs by the end of 2021 and has a solid track record of collaborating with and valuing its partners and investors.

The company added that it established Valkyrie Opportunistic Fund, LP, to benefit from the enormous discount in the difference between GBTC’s NAV (net asset value) and pricing.

“We are also excited to announce the launch of the Valkyrie Opportunistic Fund, LP that seeks, among other things, to take advantage of the massive discount in the spread between the NAV and price of GBTC. 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 company outlined important changes it would make to the management of GBTC, namely enabling investors to redeem GBTC at net asset value through a Regulation M filing.

“Valkyrie is the best company to manage GBTC to ensure its investors are treated fairly,” the company said in the statement.

In order to better reflect industry standards, Valkyrie also stated that it wants to reduce fees from 200 to 75 basis points. To give investors more flexibility and options when it comes to redeeming their shares, it also wants to make an effort to offer redemptions for Bitcoin and cash.

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