Crypto asset management giant Grayscale is reportedly considering selling some of its capital back to investors if the firm’s plans for exchange-traded funds (ETFs) don’t work out.
According to a new Wall Street Journal report, Grayscale may explore alternative pathways to returning some of the Grayscale Bitcoin Trust’s (GBTC) capital to shareholders should the company’s plans for a BTC-backed ETF fall through.
According to a letter sent to investors from Grayscale Chief Executive Michael Sonnenshein, options may include “a tender offer for up to 20% of the outstanding shares of the $10.7 billion trust.”
The Grayscale Bitcoin Trust was set up to give institutional investors an easy and regulated method of exposure to Bitcoin. It is currently trading at a steep discount of over 50% below the spot price of BTC.
The news comes on the heels of the FTX exchange implosion, which has shaken investor trust in the crypto industry, and triggered increased scrutiny of the finances of crypto exchanges.
In October, Grayscale made legal moves against the U.S. Securities and Exchange Commission (SEC), alleging that the SEC is showing bias towards bids for a Bitcoin exchange-traded fund.
“In so doing, the Commission has abandoned its investor protection mandate, and it has abused its discretion by engaging in arbitrary and capricious practice of picking winners and losers among investment products.”
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