BlackRock and Valkyrie Invest Millions in Bitcoin Space

• BlackRock and Valkyrie Investments have made large investments in Grayscale Bitcoin Trust and Core Scientific, respectively.
• Valkyrie is launching a new fund, Valkyrie Opportunistic Fund, LP, with the aim of capitalizing on GBTC’s discount on the value of its Bitcoin.
• BlackRock has committed $17 million to Core Scientific, as part of a $75 million loan convertible note holders secured by the miners.

Crypto asset manager Valkyrie Investments and BlackRock have both made major investments in Grayscale Bitcoin Trust (GBTC) and Core Scientific, respectively. The former is popular for launching a Bitcoin trust and Bitcoin-related exchange-traded-fund (ETF) in 2021 and currently manages $10 billion in assets. This is compared to Valkyrie’s total assets of $180 million. Despite the difference in asset management, Valkyrie believes it can effectively sponsor and manage GBTC.

Valkyrie also announced that it is launching a new fund, Valkyrie Opportunistic Fund, LP, in order to capitalize on the GBTC’s discount on the value of its Bitcoin. The fund aims to provide GBTC redemptions at net asset value (NAV) for customers, with a fee of 75 basis points as opposed to the 200 basis points.

On the other hand, BlackRock has sought to commit $17 million to Core Scientific. According to the US Securities and Exchange Commission filing, this is part of the $75 million loan convertible note holders secured by the miners.

The investments made by Valkyrie and BlackRock indicate that there is still strong interest in the crypto market. While the current market conditions may be difficult, these investments demonstrate that the Bitcoin ecosystem is still growing and evolving. It remains to be seen how these investments will affect the crypto market in the future, but in the meantime, it is good news for those who are invested in the space.

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