One of the big developments that came in late December 2022 actually emerged in the form of a proposal by the cryptocurrency asset management firm called Valkyrie. The company published a press release on December 28th, stating its proposal and intention to become the new sponsor and manager of the GBTC (Grayscale Bitcoin Trust).
The company opened its case by noting that it is a registered investment advisor and a highly trusted investment manager. It also added that it has extensive experience in the world of cryptocurrency and Bitcoin, specifically. As such, it is uniquely qualified to take on this role.
So far, the company has established a proven track record when it comes to successfully managing digital assets. Its own Bitcoin Trust has operated with strong daily liquidity for two full years since it was established on January 1st, 2021. Later in 2021, the firm also launched a Bitcoin ETF, all the while nurturing its reputation through deeds like taking care of its investors and partners alike.
Next, the firm’s statement noted that it has an experienced team of fund managers. The team launched, managed, and took over a closed-end fund from another manager who proved to be bad at the job. With that being the case, Valkyrie claims that it is well-equipped to handle all the unique challenges that might accompany GBTC, featuring a strong combination of technical and regulatory knowledge. Adding hands-on experience into the mix, the firm has no equal among competitors.
Valkyrie says it can improve upon the current management of GBTC
Valkyrie also used this opportunity to announce its plans to launch the Valkyrie Opportunistic Fund. This is a liquidity pool that seeks to take advantage of major discounts in the spread between the price of GBTC and the NAV. The firm noted that it is very interested in realizing the true value of the underlying BTC of GBTC and that it will actively pursue this goal on behalf of its investors.
Of course, it added that it understands that Grayscale has played a major and highly impactful role when it comes to both the development and growth of the bitcoin ecosystem when it launched its Bitcoin Trust. While the firm underlined that it has great respect for Grayscale’s team and their work, it also stated that recent events that involved Grayscale and its affiliated firms have shown that it is time for a change. Valkyrie is, therefore, ready to fill in the gap, and become the new manager of the Thrust, ensuring that all investors are treated fairly and that all moves are made for their benefit.
It even outlined several key ways in which it could improve upon the current management of GBTC. It would facilitate orderly redemption at net asset value for investors who want it. It would also reduce the fees to a more equitable level, proposing a fee of 75 basis points, as opposed to the current one that has 200 basis points. Lastly, it would try to offer redemption in Bitcoin and cash alike, granting investors greater flexibility and an actual choice in the matter.
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