• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Grayscale CEO confirms tender offer if Bitcoin ETF path fails
Investing

Grayscale CEO confirms tender offer if Bitcoin ETF path fails

by December 19, 2022
by December 19, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Grayscale Investments will look to return 20% of Grayscale Bitcoin Trust (GBTC) fund to investors if its bid to have a spot Bitcoin ETF fails.

The company will explore this option should its battle to have the Securities and Exchange Commission (SEC) approve its application to convert GBTC into spot bitcoin ETF fail. That’s the message Grayscale CEO Michael Sonnenshein gave to investors via an end-of year letter on Monday.

The SEC has rejected Grayscale’s proposal to convert GBTC to an ETF already this year, with the regulator’s actions seeing the investment firm file a lawsuit.

On Monday, Sonnenshein said the company was 100% committed to pushing for an approval, noting that this remains a route that would best benefit investors. On what happens next if the firm losses the legal challenge against the SEC, the Grayscale CEO noted:

“We remain confident that the D.C Court of Appeals will agree with our strong, common sense, and compelling legal arguments, but we also appreciate investors’ interest in what happens to GBTC if the courts do not rule in our favor.”

Grayscale won’t dissolve GBTC

Grayscale will consider a tender offer to return a percentage of the GBTC capital to shareholders, he added. However, this path is an option if the asset manager exhausts all options in applicable courts, as well as determine that there’s no further openings with regard to possible legislative and regulatory avenues.

According to Sonnenshein, the tender offer would be for 20% of GBTC outstanding shares. To achieve this, Grayscale will need approval from the SEC for certain reliefs, as well as shareholder approval. The firm does not plan to dissolve GBTC even if it fails in its quest for a tender offer.

GBTC is trading at a huge discount to the net asset value (NAV), currently at 49% as the company navigates solvency concerns around parent-firm Digital Currency Group.

Grayscale’s exposure to the struggling crypto broker Genesis Global has also been a massive source of jitters, with crypto concerned an unwinding of GBTC would massively impact the price of Bitcoin.

The post Grayscale CEO confirms tender offer if Bitcoin ETF path fails appeared first on Invezz.

You Might Also Like
  • 7 Helpful Tips To Invest Your Money And Time In 2025
  • Nike stock up 12% on Q2 earnings: should you buy?
  • 4 takeaways after the last Federal Reserve rate hike
  • Should I buy Intel shares after the current dip?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
TuSimple Holdings stock on a downward spiral on looming layoffs
next post
Analyst names two retail stocks to buy for 2023

You may also like

Wise share price outlook as revenue and profits jump

November 29, 2022

A homebuilder stock that could more than double from here

December 13, 2022

Asos share price is down by 90% from ATH: Is...

November 25, 2022

2022 Inflation statistics: how bad is it worldwide?

December 2, 2022

Phillip Newman foresees considerable headwinds for silver prices in 2023

November 30, 2022

Peloton is on a path to penny stock status in...

December 28, 2022

Cowen analyst names Raytheon stock his ‘best idea’ for 2023

November 28, 2022

3Commas admits to API keys leak after anon reveals database

December 29, 2022

Chevron will still be drilling in 2050: CEO Mike Wirth

December 2, 2022

40+ Spotify statistics 2022: SPOT stock, revenue and performance

December 2, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    7 Steps To Take Your Investments...

    January 20, 2023

    Top 3 monthly dividend stocks to...

    November 25, 2022

    Coinbase, Galaxy Digital shares rise sharply...

    December 29, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here