Grayscale Faces Investors' Criticism as GBTC Premium Still Negative
Main page News, Bitcoin, US Market, Crypto Market, Cryptocurrency
Hot topic
6 April
96 96

Marlton LLC, an investment firm based in Chicago, which hodls trust shares of Grayscale Bitcoin Trust (GBTC), says the cryptocurrency asset manager has done little to increase shareholder value, Bloomberg has learned, citing a letter that Marlton LLC sent to the board of Grayscale.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

James Elbaor, Managing Partner of Marlton, said in the letter the firm is "frustrated" that the board might allow management to squander the company’s leading market share to the detriment of GBTC stockholders, whilst "simultaneously rewarding yourselves handsomely with a profligate, market-leading, 2% management fee."

"Marlton and other stockholders will not tolerate such clear destruction of stockholder value," Elbaor added.

Elbaor also said "aggressive competition" from other cryptocurrency-oriented companies like NYDIG, Galaxy Digital and BlockFi, "threatens GBTC’s dominant U.S. market position."

Grayscale Investments Announces Five New Investment Trusts

Marlton's statement comes after Grayscale announced it remains committed to converting GBTC into an exchange traded fund (ETF). However, the company emphasized the timing will be driven by the "regulatory environment." At the press time, GBTC premium is at -8.52, according to YCharts.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Please describe the error