On December 28, Valkyrie Investments, the largest fund in the cryptocurrency industry, declared its intention to become the sponsor and manager of the Grayscale Bitcoin Trust (GBTC), one of the largest Bitcoin investment funds worth 643,572 BTC ($10.6 billion).
In light of the fund’s record-high discount to net asset value (NAV), which had widened to over 45% by December 30, 2022, Valkyrie responded by creating the Valkyrie Opportunistic Fund on December 30, 2022.
This new hedge fund is intended to benefit from the significant discount on GBTC, enabling Valkyrie to increase its holdings of the asset and strive to achieve “the true value of the underlying Bitcoin for their investors.”
Moreover, Grayscale filings appear to indicate that stockholders have minimal voting rights and no involvement in the trust’s management or governance, so Valkyrie’s steps towards sponsorship and the introduction of the new fund may improve the situation.
ARK investment management recently reportedly added an additional $1.4 million to purchase 176,945 shares of Grayscale’s Bitcoin Trust fund.