Grayscale Investments will explore how to return up to 20% of its Grayscale Bitcoin Trust’s capital to shareholders if it cannot turn the product into an exchange-traded fund.
A tender offer for 20% of the outstanding shares could be on the table, according to a letter from chief executive Michael Sonnenshein seen by The Wall Street Journal. However, a timeline still needed to be clarified.
The Grayscale Bitcoin Trust carries the ticker GBTC and is a closed-end fund, with a 2% annual fee. It’s currently trading at a nearly 50% discount compared to the bitcoin price.
Crucially, shares in the fund cannot be redeemed, forcing sellers to part with their holdings at a discount. Converting GBTC into an exchange-traded fund could resolve this. However, the U.S. Securities and Exchange Commission has thus far proven harshly critical of spot bitcoin ETFs — having rejected every application for years. Grayscale is currently involved in a lawsuit against the SEC.
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Source: https://www.theblock.co/post/196193/grayscale-gbtc-etf-return-capital?utm_source=rss&utm_medium=rss