Asset Management Firm Sponsors Grayscale’s GBTC as Discount Widens

Valkyrie Investments, a leading financial services firm and crypto asset manager, has proposed to take over management of the Grayscale Bitcoin Trust (GBTC). Valkyrie believes that it is uniquely qualified to take on this role, given its extensive experience in the world of cryptocurrency.

Valkyrie CEO Leah Wald wrote in a blog post that “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.” However, Wald added that “in light of recent events involving Grayscale and its family of affiliated companies, it is time for a change.”

One of the concerns that Valkyrie has with Grayscale is its management fee. Grayscale charges a 200 basis points fee on GBTC, which is significantly higher than the fees charged by other crypto asset managers. Valkyrie has proposed lowering the management fee to 75 basis points.

Another concern that Valkyrie has with Grayscale is its lack of shareholder control. GBTC shareholders have little voting power and no control over how the trust fund is managed. Valkyrie has proposed giving shareholders more control over the trust fund.

If Valkyrie’s proposal is successful, it would be a major shakeup in the crypto asset management industry. Grayscale is the world’s largest cryptocurrency fund, and its GBTC product is one of the most popular ways for investors to get exposure to bitcoin. Valkyrie’s proposal could lead to more competition in the crypto asset management space and could lower fees for investors.

It remains to be seen whether Valkyrie’s proposal will be successful. Grayscale has not yet responded to the proposal, and it is unclear whether it will be willing to give up control of GBTC. However, Valkyrie’s proposal is a sign that the crypto asset management industry is maturing and that investors are demanding more control over their investments.