The proposed offer would require both SEC discharge and shareholder approval.
According to a year-end letter to investors published on December 10, Michael Sonnenshein, CEO of Grayscale Investments, said the company may “consider a tender offer for a portion of the outstanding shares of GBTC [Grayscale Bitcoin Trust ]” if the latter sells the Case is Exchange Traded Fund (ETF) conversion process is ultimately unsuccessful. Sonnenshein said “such a tender offer would not apply to more than 20% of GBTC’s outstanding shares” and would both require a regulatory “waiver” from the U.S. Securities and Exchange Commission. and shareholder approval.

Grayscale and its subsidiary OTC fund GBTC are currently embroiled in litigation with the SEC after the SEC denied Grayscale’s request to convert GBTC to a spot bitcoin ETF on June 29, 2022. As reported by Sonnenshein, Grayscale filed its opening brief against the SEC on October 11, 2022 and is expected to file its response to an SEC response brief by January 13, 2022, with the final written brief due February 3, 2022. “Few soon after, a three-judge panel will be selected to hear oral arguments and decide the case,” Sonnenshein wrote to investors.

“In the event that we are unable to pursue options to return some of the capital to shareholders, we do not currently intend to liquidate GBTC, but will continue to operate GBTC without an ongoing buyout program until that we manage to convert it into a spot.” -Bitcoin ETFs.
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Cointelegraph previously reported that GBTC, along with other large grayscale digital currency funds, are trading at discounts to net asset values, or NAVs, of 34% to 69% due to solvency issues stemming from its parent company, Digital Currency Group, and its exposure. to struggling cryptocurrency broker Genesis Global. As of press time, GBTC has $10.68 billion in bitcoins

tick down

under management, but is only worth $5.48 billion by market cap.

Source: CoinTelegraph