Grayscale Initiates Significant Amendments To GBTC Trust Agreement
The post Grayscale Initiates Significant Amendments To GBTC Trust Agreement appeared on BitcoinEthereumNews.com.
The world’s largest crypto asset management company, Grayscale, has recently made a few significant adjustments to its Grayscale Bitcoin Trust (GBTC) agreement for the first time in five years, signaling a strategic shift. Grayscale Adjustments To The Agreement Governing Its GBTC On Wednesday, November 29, Grayscale submitted a consent solicitation statement in an effort to amend the trust agreement governing the Grayscale Bitcoin Trust (GBTC) with the assets of shareholders. A Grayscale spokesman stated: Today, Grayscale has outlined proposed amendments to GBTC’s Trust Agreement that are intended to provide operational efficiencies that we believe are beneficial to both Grayscale and GBTC. Importantly, this is in our normal course of business, and GBTC remains ready to uplist as a spot Bitcoin ETF to NYSE Arca upon appropriate regulatory approvals. The aim is to enhance the GBTC framework in preparation for a potential turn to a spot Bitcoin exchange-traded fund (ETF). As a result of this, it will ensure equitable competition with other competitors, possibly including BlackRock, a well-known asset management firm. According to the Wednesday filing, two main adjustments were made in the agreement. These include a change in the collection of fees and consolidation of assets into an all-inclusive account structure. The first proposal would allow the fund fees to be paid on a monthly basis to a daily basis. This shift is a structural improvement rather than a charge reduction as Grayscale had affirmed. It will not change the fee amount, but just the payment frequency. The filing read: With the changes we are seeking, the Sponsor’s Fee would be payable daily in arrears and the Sponsor will maintain the discretion to instruct the Custodian to withdraw Bitcoin from the Bitcoin Account equal to the accrued but unpaid Sponsor’s Fee. Currently, the firm charges a 2% management fee on…
Filed under: News - @ November 30, 2023 5:20 pm