Grayscale Investments may offer to buy up to 20% of Grayscale Bitcoin Trust  (GBTC) shares. This is a move the company hopes will close the gap between the GBTC share price and the company’s underlying Bitcoin holdings.

Michael Sonnenshein, the CEO of Grayscale Investments, categorically states that their ultimate preference lies in converting the GBTC to an ETF. Furthermore, this conversion is done for the benefit of the concerned investors. However, Grayscale Investments is also considering launching a tender offer for the GBTC shares. However, this is just in case a court does not allow the company’s intentions to convert the world’s biggest publicly traded crypto fund into an ETF.

The exposure price via one of the biggest trusts on the market has dropped to a yet unseen low. The unimaginable 50% discount to NAV is a new record we have never before witnessed.

According to an end-of-year letter to investors published on Dec. 10, Grayscale Investments' CEO Michael Sonnenshein said that the firm may consider "a tender offer for a portion of the outstanding shares of GBTC [Grayscale Bitcoin Trust]" if the latter's exchange-traded fund conversion process is ultimately unsuccessful. Sonnenshein stated that "such tender offer would be for no more than 20% of the outstanding shares of GBTC" and would require both regulatory "relief" from the U.S. Securities and Exchange Commission as well as shareholder approval to approve such offer.

Grayscale Investments said the firm would explore new options to return a portion of the Grayscale Bitcoin Trust capital to shareholders if it fails to transform the world’s largest bitcoin fund into an exchange-traded fund.

The US SEC has reiterated its decision to deny Grayscale’s spot Bitcoin ETF application, causing Bitcoin to dip below $17k, erasing all its weekly gains.

Grayscale and DCG never promoted the disruptive potential of cryptocurrency but encouraged the speculative aspect of wild trading and hype instead.

The United States Securities and Exchange Commission (SEC) is taking further steps to stop Grayscale Investments’ efforts to launch a Bitcoin exchange-traded fund (ETF). Grayscale began its legal challenge of the SEC’s denial order of the proposed investment product in June 2022.

SEC has now approved several Bitcoin futures-based ETFs, yet it has continued to disapprove spot-based Bitcoin ETF applicants.

Grayscale Investments said the U.S. Securities Exchange Commission has filed its first legal brief in the lawsuit the crypto asset manager filed over the rejection of its application for a spot bitcoin exchange-traded fund.