Crypto Asset Manager Valkyrie Investments Wants to Sponsor, Manage Grayscale Bitcoin Trust

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Crypto Asset Manager Valkyrie Investments Wants to Sponsor, Manage Grayscale Bitcoin Trust
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Valkyrie Investments said it wants to become the sponsor and manager of the massive Grayscale Bitcoin Trust (GBTC), saying it’s “time for a change.” By HeleneBraunn

Valkyrie, one of Grayscale’s rivals, previously launched a bitcoin trust and a bitcoin-related exchange-traded-fund in 2021. As part of their plan to sponsor GBTC, the world’s largest bitcoin fund, the Tennessee-based company also announced the launch of a new fund, the Valkyrie Opportunistic Fund, LP that seeks to take advantage of GBTC’s discount to the value of its underlying bitcoin, the company said.

Valkyrie’s plan would be a tall order, considering that GBTC alone has over $10 billion in assets and Valkyrie only handles roughly $180 million in total assets. “We understand that Grayscale has 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 that they have done,” Valkyrie said. “However, in light of recent events involving Grayscale and its family of affiliated companies, it is time for a change.”In its proposal, Valkyrie said it wants to facilitate GBTC redemptions at net asset value for investors through a Regulation M filing.

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