{"id":71657,"date":"2022-12-19T16:43:55","date_gmt":"2022-12-19T14:43:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=71657"},"modified":"2025-09-08T10:20:26","modified_gmt":"2025-09-08T07:20:26","slug":"grayscale-to-buy-back-20-of-gbtc-on-the-open-market-if-sec-rejects-conversion-to-etf","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/grayscale-to-buy-back-20-of-gbtc-on-the-open-market-if-sec-rejects-conversion-to-etf\/","title":{"rendered":"Grayscale to buy back 20% of GBTC on the open market if SEC rejects conversion to ETF"},"content":{"rendered":"<p>The digital assets manager Grayscale Investments will buy back a fifth of the outstanding GBTC shares if the <span data-descr=\"The U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> refuses to convert it into <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETF<\/a>. The Wall Street Journal reports, citing investor materials.<\/p>\n<p>The proposal is signed by Grayscale CEO Michael Sonnenshein.<\/p>\n<p>It states that, in that scenario, holders would have the option to tender their shares at a set price during a defined window.<\/p>\n<p>Grayscale is not currently accepting redemption requests for GBTC. Investors can sell them on the open market where the shares trade at a 48.57% discount to <span data-descr=\"net asset value\" class=\"old_tooltip\">NAV<\/span>. The company charges a 2% management fee.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"285\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Image-74-1024x285.png\" alt=\"Image-74\" class=\"wp-image-193801\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Image-74-1024x285.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/Image-74-300x83.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Image-74-768x214.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/Image-74.png 1028w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Premium\/discount dynamics of GBTC to NAV. Data:<a href=\"https:\/\/ycharts.com\/companies\/GBTC\/discount_or_premium_to_nav\"> yCharts<\/a>.<\/figcaption><\/figure>\n<\/div>\n<p>The letter is intended to ease shareholders&#8217; concerns amid the turbulence in the cryptocurrency market caused by<a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\"> the collapse of FTX<\/a>.<\/p>\n<p>Earlier Bernstein analysts<a href=\"https:\/\/u1f987.com\/en\/news\/bernstein-analysts-flag-possible-liquidation-of-the-grayscale-bitcoin-trust\"> warned that the Bitcoin Trust could be liquidated<\/a> due to potential issues at the parent company Grayscale Investments \u2014 Digital Currency Group.<\/p>\n<p>In December hedge fund Fir Tree Capital Management filed a lawsuit against Grayscale Investments aimed at forcing the company to resume GBTC share buybacks.<\/p>\n<p><a href=\"https:\/\/u1f987.com\/en\/news\/sec-deems-grayscale-gbtc-conversion-denial-to-a-spot-bitcoin-etf-well-founded\">has filed<\/a> the first response<a href=\"https:\/\/u1f987.com\/en\/news\/grayscale-sues-sec-over-refusal-to-convert-gbtc-into-an-etf\"> to Grayscale&#8217;s lawsuit<\/a> regarding the rejection of the application to convert GBTC into a spot Bitcoin ETF. The regulator called the decision \u201cwell-grounded and reasonably explained.\u201d<\/p>\n<p>Follow ForkLog&#8217;s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Grayscale Investments, the digital assets manager, will buy back a fifth of outstanding GBTC shares if the SEC refuses to convert it into an ETF. The Wall Street Journal reports, citing investor materials.<\/p>\n","protected":false},"author":1,"featured_media":71658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1214,943,1211],"class_list":["post-71657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-grayscale-bitcoin-trust","tag-grayscale-investments","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=71657"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71657\/revisions"}],"predecessor-version":[{"id":71659,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71657\/revisions\/71659"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/71658"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=71657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=71657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=71657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}