Grayscale CEO highlights 20% GBTC share buyback option if ETF conversion fails

According to an end-of-year missive to investors published connected Dec. 10, Grayscale Investments' CEO Michael Sonnenshein said that the steadfast whitethorn see "a tender connection for a information of the outstanding shares of GBTC [Grayscale Bitcoin Trust]" if the latter's exchange-traded money conversion process is yet unsuccessful. Sonnenshein stated that "such tender connection would beryllium for nary much than 20% of the outstanding shares of GBTC" and would necessitate some regulatory "relief" from the U.S. Securities and Exchange Commission arsenic good arsenic shareholder support to o.k. specified offer.

Grayscale and its subsidiary over-the-counter traded money GBTC is presently embroiled successful a suit with the SEC aft the second denied Grayscale's application to person the GBTC to a spot Bitcoin ETF connected June 29, 2022. As told by Sonnenshein, Grayscale filed its opening little against the SEC connected October 11, 2022, and is owed to taxable its effect to an SEC reply little by January 13, 2022, with the last written little owed connected February 3, 2022. "Shortly thereafter, a three-judge sheet volition beryllium selected to perceive oral arguments and regularisation connected the case," Sonnenshein wrote to investors. 

"In the lawsuit we are unsuccessful successful pursuing options for returning a information of the superior to shareholders, we bash not presently mean to dissolve GBTC, but would alternatively proceed to run GBTC without an ongoing redemption programme until we are palmy successful converting it to a spot bitcoin ETF."

Cointelegraph antecedently reported that GBTC, on with different large Grayscale integer currency funds, are trading astatine discounts to nett plus values, oregon NAVs, of 34% to 69% owed to solvency concerns arising from its genitor company, Digital Currency Group, and its exposure to troubled cryptocurrency broker Genesis Global. At the clip of publication, GBTC has $10.68 cardinal successful Bitcoin (BTC) nether absorption but is lone worthy $5.48 cardinal per marketplace capitalization.