Grayscale may offer to buyback GBTC if ETF conversion fails – WSJ

Grayscale Investment CEO Michael Sonnenshein has informed GBTC shareholders that the steadfast could connection to bargain backmost up to 20% of the outstanding shares worthy astir $10.7 billion, The Wall Stree Journal reported Dec. 19.

In the aftermath of caller marketplace contagion, speculation has dispersed astir the insolvency of Grayscale and its affiliated companies, including Digital Currency Group (DCG) and Genesis Global.

Specifically, the Grayscale Bitcoin Trust (GBTC) shares person been trading astatine a 50% discount comparative to the terms of the underlying Bitcoin.

To allay the increasing fears from GBTC’s escaped fall, Grayscale reportedly sent a letter to investors hinting astatine plans to instrumentality a information of the GBTC superior to shareholders if it fails to person the spot into a spot-bitcoin exchange-traded money (ETF).

Grayscale has been successful a ineligible conflict with the U.S. Securities and Exchange Commission (SEC) for support to person its GBTC to an ETF since 2017. The SEC cited possibilities of marketplace manipulation and fraud arsenic reasons for rejecting the application.

Grayscale CEO Michael Sonnenshein said successful an interview with WSJ that the steadfast volition combat with each its resources to spot that it is capable to person the GBTC into an ETF.

In the meantime, Sonnenshein said:

“If Grayscale is incapable to instrumentality superior to GBTC shareholders via a tender connection oregon ETF, the institution presently plans to proceed operating GBTC without a continuing redemption programme until it succeeds successful converting it into a spot bitcoin ETF.”

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