{"id":513129,"date":"2022-12-20T19:12:41","date_gmt":"2022-12-21T00:12:41","guid":{"rendered":"https:\/\/ktsl888.com\/?p=513129"},"modified":"2023-03-08T07:26:21","modified_gmt":"2023-03-08T07:26:21","slug":"grayscale-may-liquidate-600000-btc-holdings","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/grayscale-may-liquidate-600000-btc-holdings\/","title":{"rendered":"Grayscale May Liquidate 600,000 BTC Holdings Following SEC Opposition To ETF"},"content":{"rendered":"
Grayscale Investments may offer to buy up to 20% of Grayscale Bitcoin Trust\u00a0 (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.<\/p>\n
The Wall Street Journal released<\/a> a letter by Grayscale CEO Michael Sonnenshein urging<\/a> that Grayscale would consider issuing a tender offer should the Security and Exchange Commission (SEC) and shareholders give their approval.\u00a0Being a close-ended fund, GBTC shareholders can only liquidate their holdings on the open market.<\/p>\n Under the Williams Act (part of the Securities Exchange Act of 1934) that governs tender offers in the US, an investor tendering for a security must disclose their source of funds, legal agreements related to the offer, and reasons for the offer.<\/p>\n <\/p>\n If the company cannot return GBTC shareholders funds, it will continue to offer the tender until it’s converted to an ETF.<\/p>\n Sonnenshein wrote to investors:<\/p>\n In the event we are unsuccessful in pursuing options for returning a portion of the capital to shareholders, we do not currently intend to dissolve GBTC, but would instead continue to operate GBTC without an ongoing redemption program until we are successful in converting it to a spot bitcoin ETF.<\/p><\/blockquote>\n Grayscale is currently embroiled in a lawsuit with the SEC after its application<\/a> to convert GBTC to a spot Bitcoin ETF on June 29, 2022.<\/p>\n The letter by the CEO was an attempt to ease shareholder concerns after a turbulent few months across the crypto market.<\/p>\nGBTC trades at $8.08 on the 24-hour chart. Source: TradingView<\/a><\/pre>\n