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Busting the GBTC Trust with David Bailey

Peter McCormack

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Busting the GBTC Trust with David Bailey - WBD655 Peter McCormack

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David Bailey is the co-founder & CEO of BTC Inc. In this interview, we discuss the upcoming Bitcoin Conference in Miami, the ongoing saga with Genesis, Grayscale & DCG, as well as the Redeem GBTC campaign that David has been spearheading.

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Grayscale Bitcoin Trust (GBTC) is a trust product offered by Grayscale, a company owned by Digital Currency Group (DCG). GBTC allows investors to gain exposure to Bitcoin through more traditional investment channels, and currently, Grayscale manages approximately $18.1 billion across various funds.

However, Grayscale is facing some significant issues. Since early 2021, GBTC has been trading below its net asset value (NAV) at a discount rate of around -36%. GBTC holders are unable to redeem their shares for the underlying asset and must accept this discount if they want to sell their shares on the open market.

To address this, David Bailey has set up the Redeem GBTC campaign to push Grayscale to open withdrawals and allow GBTC holders to access the underlying Bitcoin with minimal impact on the Bitcoin market. Allowing redemptions could also potentially bring the heavy discount to NAV back closer to par.

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00:01:18: Introductions
00:02:57: 2023 Miami Bitcoin Conference
00:15:36: GBTC TL;DR
00:22:44: GBTC fees
00:29:00: Busting the GBTC Trust
00:32:58: Genesis and Grayscale TL;DR
00:43:17: Barry Silbert and Michael Sonnenshein
00:53:15: Redeem GBTC campaign
01:00:16: Final comments

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