Grayscale Will Explore Return of 20% Investor Capital If SEC Rejects Spot Bitcoin ETF: Report
Grayscale Investments is exploring options to return a portion of the capital of its flagship Grayscale Bitcoin (GBTC) product if the Securities and Exchange Commission (SEC) refuses to approve a spot bitcoin exchange-traded fund (GBTC). ETFs), The Wall Street Journal report, citing an investor letter.
One option is an offer to buy 20% of GBTC outstanding shares, which are currently trading at a 49% discount to net asset value (NAV), the report said.
Grayscale has been pushed back multiple times in its mission to convert its bitcoin trust into an ETF, with the SEC under the pretext of lack of regulatory oversight for a short time earlier this month.
Grayscale CEO Michael Sonnenshein’s letter attempted to allay shareholder concerns following a volatile month in the crypto industry following the collapse of FTX, one of the largest exchanges .
Grayscale is owned by Digital Currency Group and is a sister company of CoinDesk. Grayscale did not immediately respond to a request for comment.
In June, Grayscale sues SEC hours after the regulator rejected their ETF application, with the company saying it “completely disagrees” with the SEC’s decision.
