Valkyrie Investment Management recently offered Gary Scales to manage its Bitcoin trust fund. It is noteworthy that 90% of Valkyrie’s assets under management belong to Justin Sun. Until now, Valkyrie’s offer has not been rejected or accepted by Grayscale. According to all analysts, it is very unlikely that such a proposal will be accepted by Gary Scale, but the introduction of such a proposal is a reminder of the dire situation of Gary Scale. The most important threat that has overshadowed the crypto space and the Bitcoin market.
According to Blockchain Homeland and quoted by Blockworks, in a move that institutional crypto investors and market makers consider a long shot in the dark, Valkyrie Investments plans to enter the scene as the last potential savior of the Grayscale Bitcoin Trust. to be
Based on Statement Valkyrie published on Wednesday that Valkyrie has offered to cooperate as a manager and sponsor of Gary Scale’s Bitcoin Trust.
Probably the first potential step after accepting this offer is to launch a new hedge fund called Valkyrie Opportunistic Fund. Steven McClurg, CEO of Valkyrie, offers to manage the trust as there is a huge discrepancy between the net asset value of Gary Scale’s bitcoin trust fund and the spot price of bitcoin.
McClurg’s proposal could help Gary Skille narrow the gap. Gary Scale, led by Michael Sonnenshein, has been involved in a legal battle with the SEC trying to convert a Bitcoin trust fund into an ETF, which is currently unlikely to win.
The goal here is to make it easy to release BTC from this trust, and if (Gary Scale) can’t handle it and if the shareholders want a change of manager, we suggest that we can be the manager.
Gary Skille, the world’s largest public owner of bitcoin, has so far rejected offers from other investors, including filing a Regulation M filing with the SEC that would allow investors to buy back. Sunshine’s idea to solve Gary Scale’s problems is to present a Tender Offer, i.e. sell the company’s securities to attract capital, but it has not yet taken a serious step to implement it.
However, some experts are skeptical of Valkyrie’s ability to pull off this ambitious bid even as GBTC was already trading at a 47.33% discount to Thursday’s close.
Justin Sun’s relationship with Valkyrie
Based on a report CoinDesk’s Justin Sun is described as owning the “vast majority” of Valkyrie’s digital assets.
According to the report, Sun owns 90% of Valkyrie’s digital assets. A CoinDesk report shows that Sun held $580 million in assets as of August 2022.
On the Crunchbase site, Sun is introduced as an investor in Valkyrie, and previously, Justin Sun in twitter He had talked about Valkyrie’s management. On the other hand, Valkyrie has a Tron Trust Fund.
Sun has also gained a reputation as an advertising entrepreneur who often finds himself involved in controversial adventures in the world of digital currencies.
The Valkyrie offer includes a discount on fees
Valkyrie has proposed mechanisms to improve the current management of GBTC; Including:
- Filing a Regulation M filing with the SEC to facilitate redemptions from trust investors.
- Reducing management costs to a “fairer level”.
- Attempting to create a redemption mechanism that provides both Bitcoin and cash options to GBTC investors.
The proposed fees will be 0.75%, which is much lower than the trust’s current 2% fee.
According to most experts, Valkyrie’s chance of being accepted by Grayscale is 1 in 1000. The main reason could be Valkyrie’s small assets compared to Grayscale’s massive assets. Valkyrie has only $51 million in assets under management.