Will Valkyrie And Grayscale Partner Up For GBTC? Valkyrie Investments said it has plans for struggling Digital Currency Group Grayscale Bitcoin Trust and is ready to become a “sponsor and manager” of the fund. The company also said that it created Valkyrie Opportunistic Fund, LP to invest in “a significant reduction in the difference between the net price (net price) and the price of GBTC.”
Valkyrie Investments said it has plans for struggling Digital Currency Group Grayscale Bitcoin Trust and is ready to become a “sponsor and manager” of the fund. “We are well-positioned to meet the unique challenges and opportunities presented by GBTC,” the company said in a statement on Dec. 28. “Our combination of technology and organizational knowledge and hands-on experience make us the perfect choice to do this work.”
The company also said that it has created Valkyrie Opportunistic Fund, LP to capitalize on “the huge reduction in the difference between the net price (net price) and the price of GBTC”. A spokesperson for Valkyrie told The Block that it is seeking an initial funding of $75 million.
The funds will be used to increase GBTC holdings to realize “the true value of the underlying bitcoin for our investors,” the statement said. The company has proposed key improvements it will implement for GBTC management, such as allowing investors to redeem GBTC at a profit through.
Additionally, Valkyrie said it wants to reduce debt from 200 basis points to 75 basis points to reflect better corporate practices. It also wants to try to offer bitcoin and cash redemptions to “give investors more flexibility and choice when it comes to redeeming their shares.”
Grayscale funds reached a 48.89% lower net cash return on December 13, and the GBTC price fell 77% year-on-year. “Given the recent events involving Grayscale and its allied families, the time has come for a change,” Valkyrie said.