The digital assets manager Grayscale Investments will buy back a fifth of the outstanding GBTC shares if the SEC refuses to convert it into ETF. The Wall Street Journal reports, citing investor materials.
The proposal is signed by Grayscale CEO Michael Sonnenshein.
It states that, in that scenario, holders would have the option to tender their shares at a set price during a defined window.
Grayscale is not currently accepting redemption requests for GBTC. Investors can sell them on the open market where the shares trade at a 48.57% discount to NAV. The company charges a 2% management fee.
The letter is intended to ease shareholders’ concerns amid the turbulence in the cryptocurrency market caused by the collapse of FTX.
Earlier Bernstein analysts warned that the Bitcoin Trust could be liquidated due to potential issues at the parent company Grayscale Investments — Digital Currency Group.
In December hedge fund Fir Tree Capital Management filed a lawsuit against Grayscale Investments aimed at forcing the company to resume GBTC share buybacks.
has filed the first response to Grayscale’s lawsuit regarding the rejection of the application to convert GBTC into a spot Bitcoin ETF. The regulator called the decision “well-grounded and reasonably explained.”
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