May. 10, 2022
I am a GBTC shareholder and I write to you in support of the conversion of Grayscale Bitcoin Trust (OTCQX: GBTC) to an ETF. Given your responsibility to protect investors, I ask that you protect me and my investment by approving this conversion. The discount to NAV in GBTC has been around 25%, on average, this year. This means that the price of GBTC is less than the price of Bitcoin, the asset itself. Given that GBTC has about $30bn in AUM, shareholders like me are experiencing a destruction of value of around $7.5 billion. Last October, you approved futures-backed Bitcoin ETFs, but continue to reject applications for spot Bitcoin ETFs. Given that both vehicles are used to gain exposure to the same underlying asset, Bitcoin—from which both vehicles derive their prices—we, as investors, should be able to choose if we’d like direct or futures-based exposure to that asset. I’m writing from Georgia, with gratitude for the opportunity to express my view and with the hope that you will approve this conversion and protect the interest of investors. -- Carlton Beard