• Valkyrie Investments has proposed taking over the troubled bitcoin trust GBTC from Grayscale.
• The proposal would require current GBTC shareholders to vote on via proxy.
• If chosen, Valkyrie would become the sponsor and would immediately work towards achieving a Reg M exemption.
Valkyrie Investments has proposed taking up the reins of troubled bitcoin trust GBTC, currently managed by Grayscale. The proposed takeover would require current GBTC shareholders to vote on via proxy. If chosen, Valkyrie would become the sponsor and would immediately work towards achieving a Reg M exemption.
This proposal has been put forward by Valkyrie’s co-founder and CIO, Steven McClurg, who expressed respect for the work that Grayscale had done in launching and growing the bitcoin ecosystem. He suggested that a change was needed in light of recent events involving Grayscale and its affiliated companies.
McClurg explained to Bitcoin Magazine that Valkyrie is aware of the limited voting rights of GBTC shareholders, and has planned ahead for how to overcome this issue. He declined to comment on any specifics of what that plan might entail, but hinted that this wouldn’t be their first time achieving such a goal.
If Valkyrie successfully takes over the reins of GBTC, McClurg said that their first action would be to “immediately file for Reg M exemption.” This exemption would enable GBTC shareholders to trade shares of the trust on public markets, allowing the trust to gain wider exposure and attract more investors.
In the meantime, Grayscale CEO Michael Sonnenshein has asserted that the trust is “functioning normally” and that the company is continuing to work with regulators to ensure compliance with applicable rules and regulations. Sonnenshein also expressed his belief that Grayscale is still the best firm to manage the trust.
Nevertheless, Valkyrie’s proposal has been met with excitement from many industry participants. If shareholders approve the takeover, Valkyrie will be able to take the lead in developing and growing the bitcoin ecosystem. It remains to be seen whether the team will be able to prove their worth and take up the mantle from Grayscale.