On December 28, Valkyrie Investments, the largest fund in the cryptocurrency industry, announced its intention to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC).
GBTC is one of the largest Bitcoin investment funds, currently valued at 643,572 BTC ($10.6 billion).
However, the fund has faced challenges in 2022 due to its record-high discount to net asset value (NAV), with the difference between the fund’s value and NAV widening by more than 35% over the previous six months and reaching over 45% by December 30, 2022.
In response to these challenges, Valkyrie launched the Valkyrie Opportunistic Fund on December 30, 2022, a new hedge fund designed to profit from the significant discount on Grayscale’s $10.5 billion GBTC asset.
Through this fund, Valkyrie plans to expand its holdings of GBTC and work towards obtaining “the true value of the underlying Bitcoin for their investors.”
Additionally, the Grayscale filings indicate that stockholders have minimal voting rights and no involvement in the management or governance of the trust, suggesting that Valkyrie’s steps towards sponsorship and the establishment of a new fund may improve the situation.
ARK investment management recently reportedly contributed an additional $1.4 million to acquire 176,945 shares of Grayscale’s Bitcoin Trust fund.
Roland is a Public Relations & Communications guru with an immense passion for the blockchain and crypto industry. A fusion of his expertise and passion led to the dawn of Optimisus in 2020.
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