Valkyrie Investments wants to solve problems at the largest Bitcoin fund in the world

Valkyrie Investments is a crypto investment fund and has a proposal to solve the problems at the Grayscale Bitcoin Trust (GBTC). GBTC is the largest Bitcoin fund in the world, managing over 600,000 Bitcoin for its investors. The problem is that the fund’s shares are currently trading about 50 percent below Bitcoin’s value.

Discount on Bitcoin

For investors, investing in GBTC seems like they are buying Bitcoin at a discount. The total value of the shares is almost 50 percent below the market value of the Bitcoin that the fund manages. Valkyrie now thinks he has a possible solution for this. Incidentally, Valkyrie is a competitor of Grayscale, because it launched another Bitcoin exchange traded fund (ETF) in the United States in 2021.

Now it plans to launch the Valkyrie Opportunistic Fund, LP, to take advantage of the discount on GBTC shares, according to a statement. blog post. Valkyrie’s plan is quite optimistic, as GBTC alone manages over $10 billion in assets, while Valkyrie only manages $180 million. In that respect, it seems a bit too ambitious a plan, but we’ll see.

“It is time for change”

In the blog post, Valkyrie states that it respects what Grayscale has done for the development and growth of the Bitcoin ecosystem, but that it is time for a change. “We understand that Grayscale 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 they have done,” said Valkyrie.

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But in light of recent events at Grayscale and its associated family of companies, it is time for a change. Grayscale is part of the Digital Currency Group, which is currently in dire financial straits.

In the proposal, Valkyrie indicates that it wants to facilitate the conversion of GBTC for investors at the current market value of Bitcoin. It also wants to reduce the management fee from 200 basis points (2 percent) to 75 basis points (0.75 percent). In addition, it should be possible to convert the shares into Bitcoin as well as cash.

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