Grayscale Seeks Alternatives for Conversion GBTC into Bitcoin-ETF: Report | News

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. 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