Grayscale Bitcoin Trust Challenged Anew by Osprey Overhaul Plan

Rival proposes taking over, lowering fee, seeking redemptions
GBTC is trading about 40% below the value of Bitcoin it holds

Barry Silbert
Photographer: Joe Buglewicz/Bloomberg

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By Katie Greifeld and Vildana Hajric

January 13, 2023 at 10:28 PM UTC

This article is for subscribers only.

Crypto asset manager Osprey Funds is the latest to call out Barry Silbert’s Grayscale Investments over its Bitcoin trust’s deep discount, announcing that it asked to be installed by its bigger rival as the sponsor of the beleaguered product in order to spur changes that could help narrow that gap.

Osprey, writing Friday in an open letter to Silbert, said it would reduce the management fee of the $12 billion Grayscale Bitcoin Trust (GBTC) to 0.49% from its current 2%, which has been a sore point with some of its investors. The Fairfield, Connecticut-based company also said it would look to implement a redemption program to help narrow the discount that’s plagued the fund since early 2021, and would pursue a listing on the New York Stock Exchange.