Grayscale Seeks Alternatives of Conversion GBTC into Bitcoin-ETF: Report
Main page News, Shares, SEC, Bitcoin-ETF, Grayscale
Hot topic
Dec. 19, 2022

Grayscale Investments is seeking alternatives for its commitment of converting Grayscacle Bitcoin Trust (GBTC) into an exchange-traded fund (ETF), the Wall Street Journal has learned, citing a letter to investors from Grayscale CEO Michael Sonnenshein.

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

Currently, Grayscale is in a legal battle against the US Securities and Exchange Commission (SEC) as the financial regulator rejects bitcoin-ETF applications, claiming that these products are vulnerable to fraud and market manipulation.

One of Grayscale's options includes a tender offer for up to 20% of the outstanding shares of GBTC. So far, Grayscale have only been creating shares, but not redeeming them. With a tender offer, shareholders could sell their shares at a specific price during a certain time, Sonnenshein said in the letter. However, the timeframe and other details of this offer remain unclear.

Grayscale Initiates Legal Battle with SEC Over Bitcoin ETF

In early December, New York-based hedge fund Fir Tree Capital Management filed a lawsuit against Grayscale Investments, asking the court to oblige the firm to buyback shares of Grayscale Bitcoin Trust (GBTC), which are now trading at a 45% discount.

Fir Tree also wants Grayscale to abandon a legal battle with the US Securities and Exchange Commission (SEC) as the financial regulator earlier refused to permit the conversion of GBTC into a bitcoin-ETF.

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