Valkyrie is known to sponsor the Bitcoin Trust from Grayscale because the GBTC discount is expanded to NAV-
Valkyrie is known to sponsor the Bitcoin Trust from Grayscale because the GBTC discount is expanded to NAV-
Valkyrie Investments, an asset manager based in Tennessee, has announced his intention to become the new sponsor of Grayscales Bitcoin Trust (GBTC). The company states that it is "uniquely qualified" for this role and plans to facilitate returns to the net inventory value (NAV) by submitting regulation M.
Valkyrie offers to take over the administration of the Bitcoin Trust from Grayscale
Bitcoin Trust from Grayscale ( AGT ) AM 2022 Approx. In the past six months, the spread between the fund value and the NAV has increased by more than 35 % by the end of September 2022. As of December 30, 2022, the discount continued to more than expanded 45%. This means that the value of the Bitcoin fund is currently lower than currently bitcoin spot prices. Valkyrie wants to remedy the situation by taking over and putting another fund.
"We understand that Grayscale has played an important role in the development and growth of the Bitcoin ecosystem with the introduction of GBTC, and we respect the team and the work they did", Valkyrie wrote . "In view of the recent events related to Grayscale and his family, it is time for a change. Valkyrie is the best company to manage GBTC to ensure that its investors are treated fairly."
The fund manager announced on Friday that he puts the Valkyrie Opportunistic Fund, a company that aims to use GBTC's discount on the net inventory value. According to Valkyrie, the team will increase its GBTC stocks, which could ultimately show the "true value of the underlying Bitcoin for our investors". At the time of the writing of this article, the Bitcoin Trust, which is managed by Grayscale, keeps about 643.572 bitcoin .
After the announcement, Eric Balchunas said Senior Exchange Traded Fund (ETF) Analyst at Bloomberg, shared his opinion about walkures. "Valkyrie puts on Valkyrie Opportunistic Fund to become the new sponsor of GBTC (which is traded with a discount of 50 %) and to enable returns to the NAV and for a fee of 75 basic points," twittered Balchunas. “Long Shot, but speaks for growing pressure.”
In the announcement, Walküre made three suggestions:
- Relief of ordered returns to the net inventory value (NAV) for all investors who want this to be given the possibility of returning their shares without delays or obstacles at a fair price.
- lower the fees in accordance with proven industry practices to a fairer level. We propose a fee of 75 basis points, which is significantly below the current set of 200 basis points.
- Try to offer returners in both Bitcoin and cash. This gives investors more flexibility and options in returning their shares.
The offer of Valkyrie comes at a time when the parent company of Grayscale, Digital Currency Group (DCG), had problems with its subsidiary Genesis Global Capital. In mid-November, the Fleet of Genesis and new loan spaces on the platform. It is that Genesis of the cryptocurrency exchange gemini 900 million Dollar owes, and gemini has formed Houlihan Lokey to regain the funds.
In addition, Zwillinge is faced with a possible collective action of two investors Gemini Earn program of the company. Despite the speculation, CEO Barry Silbert says that the company will "continue to be a leading client of the industry". At the time of writing this article, neither Grayscale nor DCG reacted to Valkyrie's offer to become the new GBTC sponsor.
What do you think of Valkyrie's offer to sponsor GBTC? Share your thoughts on this topic in the comment area below.
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