{"id":16459,"date":"2023-01-14T18:54:37","date_gmt":"2023-01-14T18:54:37","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/osprey-vies-for-control-of-grayscales-bitcoin-trust-trons-justin-sun-offers-to-invest-up-to-1b-on-dcg-assets-bitcoin-news\/"},"modified":"2023-01-14T18:54:37","modified_gmt":"2023-01-14T18:54:37","slug":"osprey-vies-for-control-of-grayscales-bitcoin-trust-trons-justin-sun-offers-to-invest-up-to-1b-on-dcg-assets-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/osprey-vies-for-control-of-grayscales-bitcoin-trust-trons-justin-sun-offers-to-invest-up-to-1b-on-dcg-assets-bitcoin-news\/","title":{"rendered":"Osprey Vies for Control of Grayscale’s Bitcoin Trust; Tron’s Justin Sun Offers to Invest Up to $1B on DCG Assets \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Following charges by the U.S. Securities and Exchange Commission against the crypto exchange Gemini and the digital currency lender Genesis, Tron founder Justin Sun told the press that he may be able to purchase assets from Genesis, up to $1 billion, \u201cdepending on their evaluation of the situation.\u201d Additionally, the crypto investment manager Osprey has published an open letter to Barry Silbert of Digital Currency Group in an attempt to take over the management of Grayscale\u2019s Bitcoin Trust (GBTC).<\/strong><\/p>\n

Osprey Proposes Management Changes to Grayscale\u2019s Bitcoin Trust in Open Letter to Digital Currency Group<\/h2>\n

On Jan. 12, 2023, the U.S. Securities and Exchange Commission (SEC) filed charges<\/a> against the crypto exchange Gemini and crypto lender Genesis Global Capital. The crypto lender Genesis Global Capital is a Digital Currency Group (DCG) subsidiary. The regulator claims that the two organizations took part in an \u201cunregistered offering.\u201d<\/p>\n

The SEC said that roughly three years ago, Gemini and Genesis gave investors the opportunity to loan crypto assets in exchange \u201cfor Genesis\u2019 promise to pay interest.\u201d The SEC charges followed two letters written by Gemini co-founder Cameron Winklevoss (letter 1<\/a>, letter 2<\/a>) and a recent shareholders letter<\/a> by Silbert denying the accusations.<\/p>\n

\"Osprey
The open letter to Barry Silbert from Osprey on Jan. 13, 2023.<\/figcaption><\/figure>\n

The following day, the crypto investment manager Osprey<\/a> published an open letter<\/a> to Barry Silbert, the CEO of Digital Currency Group (DCG). Osprey wants to take over the Grayscale Bitcoin Trust (GBTC<\/a>) as the fund believes \u201cOsprey is the best-positioned third party to manage GBTC at this point.\u201d DCG is the parent firm of Grayscale, and Osprey is not the first digital currency fund to offer help; the Tennessee-based crypto asset manager Valkyrie Investments is also vying to take over GBTC<\/a>. Like Osprey, Valkyrie published an open letter to DCG stating that it is \u201cuniquely qualified\u201d for the role.<\/p>\n

In its letter, Osprey detailed that if it were to take over GBTC\u2019s management, it would change a few things associated with the Bitcoin Trust. \u201cWe would slash the management fee to 0.49% and clean up the expense structure of the fund, which contains significant conflicts of interest,\u201d Osprey said on Friday. \u201cWe would also seek to implement a redemption program as soon as possible.\u201d The digital currency fund manager added:<\/p>\n

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We would pursue a listing on NYSE immediately but from a position of collaboration with regulators. For example, we would not engage in any lawsuits against the SEC, but instead, would work directly with Congress to enlighten the SEC as to the rationale of approving the fund as an exchange-listed, ETP.<\/p>\n<\/blockquote>\n

The company thinks that it is extending a hand in order to show continued commitment to shareholders. Osprey insists that DCG and Silbert should allow the fund to take over as soon as possible. \u201cWe urge you to install Osprey Funds as the sponsor of GBTC immediately, both to protect GBTC holders and provide confidence to the non-DCG-affiliated stakeholders of GBTC and Grayscale who have an interest in the preservation of value,\u201d Osprey said.<\/p>\n

Tron\u2019s Justin Sun Offers to Invest $1 Billion in Digital Currency Group Assets Amid SEC Charges Against Gemini and Genesis<\/h2>\n

Meanwhile, Tron\u2019s Justin Sun<\/a> has told Reuters<\/a> that he too is also willing to lend a hand. Sun said that he would consider investing $1 billion into Digital Currency Group (DCG) assets, but it depends on the \u201cevaluation of the situation.\u201d Sun also offered to help FTX the day before the exchange filed for bankruptcy on Nov. 11, 2022.<\/p>\n

\"Osprey
Tron\u2019s Justin Sun (pictured above) is willing to lend a hand by buying $1 billion worth of DCG assets depending on the \u201cevaluation of the situation,\u201d the Tron founder told Reuters.<\/figcaption><\/figure>\n

At the time, Sun said<\/a> his team was working around the clock to help alleviate the situation with FTX, and he also remarked<\/a> that he was taking steps to help FTX. However, none of the promises came to fruition and the following day, FTX filed<\/a> for Chapter 11 bankruptcy protection and Sam Bankman-Fried<\/a> stepped down as CEO.<\/p>\n

It\u2019s uncertain whether or not Digital Currency Group (DCG) or Genesis will accept help from organizations and individuals within the crypto industry. The company did not respond to Valkyrie\u2019s attempt to sponsor GBTC over Grayscale during the first week of the new year.<\/p>\n

Furthermore, Grayscale has been involved in an ongoing legal dispute<\/a> with the SEC over denying GBTC being converted into an exchange-traded fund (ETF). Grayscale believes if the SEC allowed them to convert GBTC into an ETF, it would allow them to issue and redeem Bitcoin Trust shares. Grayscale has criticized<\/a> the commission\u2019s reasoning greatly and stressed that the U.S. regulator\u2019s \u201ccentral premise is illogical.\u201d<\/p>\n

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\nTags in this story
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1 billion<\/a>, Accusations<\/a>, Assets<\/a>, Bankruptcy<\/a>, Barry Silbert<\/a>, bitcoin trust<\/a>, ceo<\/a>, Charges<\/a>, Collaboration<\/a>, Congress<\/a>, Crypto<\/a>, crypto assets<\/a>, crypto industry<\/a>, DCG<\/a>, denial<\/a>, Digital Currency Group<\/a>, ETF<\/a>, ETP<\/a>, evaluation<\/a>, ftx<\/a>, Gemini<\/a>, genesis<\/a>, grayscale<\/a>, help<\/a>, Interest<\/a>, investment<\/a>, justin sun<\/a>, Lawsuits<\/a>, legal dispute<\/a>, Letter<\/a>, listing<\/a>, loan<\/a>, Management<\/a>, non-DCG-affiliated<\/a>, NYSE<\/a>, offering<\/a>, Osprey<\/a>, preservation<\/a>, Regulators<\/a>, Sam Bankman-Fried<\/a>, SEC<\/a>, Shareholders<\/a>, situation<\/a>, sponsor<\/a>, stakeholders<\/a>, tron<\/a>, unregistered<\/a>, Valkyrie<\/a>, Winklevoss<\/a><\/div>\n<\/div>\n

What do you think about the ongoing legal disputes and the potential management changes proposed by Osprey and Tron\u2019s Justin Sun\u2019s investment offer? Do you believe it\u2019s a step in the right direction for the crypto industry or could it lead to more complications? Share your thoughts in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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