Valkyrie To Take Over Troubled Bitcoin Trust Held By Grayscale

The asset management firm plans to manage Grayscale’s Bitcoin Trust, which has seen a significant decline since the start of the crypto winter.

Valkyrie, a Nashville, Tennessee-based asset manager with more than $1 billion in assets under management, announced the launch of the Valkyrie Opportunistic Fund, which is set to purchase and oversee Grayscale Investments’ $10.5 billion product (GBTC). currently navigating troubled waters.

Grayscale BTC (GBTC), which holds 643,572 BTC ($10.6 billion) at press time, is considered one of the largest Bitcoin Investment fund in industry. However, due to dire market conditions, high-profile collapses like the quick ftx Defeated, the trust lost nearly 50% of its bitcoin value.

Valkyrie co-founder and CIO Steven McClung spoke on the planned acquisition, praising Grayscale’s role in the advancement of enterprise-wide adoption of crypto:

“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 fair treatment for its investors.

Steven McClung, Co-Founder and CIO of Valkyrie

“The Valkyrie Fund is increasing its holdings of GBTC, allowing the company to realize “the true value of the underlying bitcoin for our investors,” which it says is a goal it is actively pursuing on their behalf, according to the company. Will go ahead.” He continued.

Valkyrie confirmed plans to add some changes to GBTC, including improving some products and introducing systematic redemptions at net asset value (NAV). This option allows customers to withdraw their funds at a reasonable price. In addition, Valkyrie will reduce opportunistic fund management fees and offer redemptions in fiat.

Another important change to be adopted by Valkyrie, according to McClure, is its filing for Reg M exemption with the US Securities and Exchange Commission (SEC).

“If approved by the SEC, [the exemption] will allow us to redeem the shares at par for those shareholders who wish to redeem,” McClure explained. to reporters,

Meanwhile, Grayscale’s Bitcoin Trust is currently facing a legal battle. On December 6, Fir Tree sued on The company will pressure Grayscale to reduce fees and restart redemptions to address the significant discount compared to the bitcoin it holds.

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