Valkyrie Investments Wants To Take Over Grayscale Bitcoin Trust, Reveals Plans

Best Owie

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The state of the Grayscale Bitcoin Trust (GBTC), the largest BTC trust in the world, has sparked concerns among investors in the space. With such a large discount to net asset value (NAV), there have been discussions on where the fund goes from here and if it is in trouble. Valkyrie Investments has now joined the conversation but is taking an entirely unexpected route.

Valkyrie Wants The Grayscale Bitcoin TRUST

In a statement that was released on Dec. 28, co-founder and CIO of Valkyrie Investments Steven McClurg revealed the company’s interest in taking over the management of Grayscale Bitcoin Trust. The statement highlights the unique challenges that are being faced by the GBTC and present the Valkyrie team as the best to manage the fund.

It points to its experience in managing its own bitcoin fund, which it says has been operating with daily liquidity since it was launched a year ago. In addition, it also puts forward its experience with its multiple publicly traded BTC ETFs that were launched in 2021 as a good reason for why it would be a good fit.

“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 that they have done,” the statement said. However, in light of recent events involving Grayscale and its family of affiliated companies, it is time for a change. Valkyrie is the best company to manage 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 to 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 trading at $8.11 | Source: Grayscale Bitcoin Trust (BTC) on TradingView.com

The Roadmap To Success

Valkyrie’s 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 plans to facilitate orderly redemptions for investors at NAV when they want it through a Regulation M filing. According to the statement, this would allow the investors to redeem shares without delays and at a fair price.

Next was the plan to lower the fees associated with the fund. Valkyrie wants an over 50% reduction in the fee to fit in with best industry practices. As such, it plans to reduce the fee from 200 basis points to 75 basis points.

Last but not is the fact that Valkyrie wants to honor investor share redemptions in both BTC and cash. Its reasoning behind this was that it believes that it gives investors “greater flexibility and choice when it comes to redeeming their shares.”

McClurg closes out the statement with a call for the statement to be considered. “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.

The GBTC discount to NAV remains high despite some recovery recorded as 2022 drew to a close. It had reached a high of 48.57% on Dec. 16 but by the end of the day on Friday, Dec. 30, the GBTC discount had fallen to 45.17%.

Featured image from Bloomberg, chart from TradingView.com

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.