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The largest Bitcoin (BTC) institutional investor is under suspicion as it trades at record discounts.
The Grayscale Bitcoin Trust (GBTC) is the latest Bitcoin industry group to feel the heat from the debacle surrounding the defunct exchange FTX.
There is now contagion and fear of a deeper market crash everywhere in bitcoin and altcoins, and anxiety is affecting even the most famous and trusted names in the cryptocurrency industry.
Most recently, it was the turn of GBTC, a Bitcoin investment fund, in the matter of related cryptocurrency firm Genesis Trading.
As reported by Cointelegraph, parent company Digital Currency Group (DCG) and operator Grayscale itself have been quick to reassure investors and the market that their flagship product is financially watertight. I tried
However, this seemed not enough to satisfy the nerves, leading to a more public declaration of trust in the DCG and GBTC.
Among them was Coinbase Institutional, the institutional investment arm of major exchange Coinbase.
Nothing is more important than ensuring the safety of our customers’ assets. murmured November 17th:
With 10 years of expertise building secure and compliant custody solutions, Coinbase Institutional is proud to offer segregated cold storage custody services from qualified custodians.
GBTC’s image has been under strain for some time. Since 2021, it is trading at a discounted BTC spot price. now approaching 50%.
Speculation is mounting amid lack of demand thanks to rumors that Grayscale could be acquired if Genesis Trading fails.
Grayscale conceptually maintains its intention to convert GBTC into an Exchange Traded Fund (ETF), so this change of policy may affect GBTC.
While this is a difficult time for many in the cryptocurrency industry, I am very optimistic about the future of the industry, the business of Grayscale, and the opportunity for investors. murmured November 19th.
The consensus remains weak that $10.5 billion of GBTC could be forced to sell.
RELATED: Grayscale cites security concerns over withholding evidence of on-chain reserves
Lyle Pratt, creator of messaging platform Vida Global, said: reacted:
Someone like Fidelity will likely buy it and keep it operational.
Meanwhile, the sharp discounting that followed the FTX saga has made GBTC a somewhat ironic ‘buy’. name ARK Invest and Lawrence Lepard, investment manager at Equity Management Associates.
“Lots of questions and DMs. Lepard views on Grayscale and GBTC Spoiler Alert: I own it,” he said. I started Create a dedicated Twitter thread over the weekend by saying:
“Buying more. Just in case I’m wrong, it’s still less than 5% of my BTC holdings. Self-sovereign key ownership is mandatory. And top priority.”
On the topic of how severely the contagion could affect DCG and its family businesses, Leopard admitted, “It’s impossible to know how much they’re suffering.”
He continued to analyze the impact of a worst-case scenario, bankruptcy.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.
