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The SEC on Wednesday rejected Grayscale’s application for a spot bitcoin ETF, citing investment managers’ failure to answer questions about market manipulation concerns.
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grayscalethe world’s largest asset manager Bitcoin fund, said in a statement Do not share evidence of reserves with customers.
Due to security concerns, we do not publish such on-chain wallet information and verification data through encrypted proof-of-reserve or other advanced cryptographic accounting procedures, it said in a statement Friday. rice field.
Followed by FTX Implosion and subsequent bankruptcy proceedings made it clear. the customer was short of fundsmultiple crypto exchanges have jumped to release audits of their reserves to ease investor concerns about the safety of their funds. like binancethey say they plan to do so soon.
In a tweet, Grayscale wrote that it recognizes that not disclosing proof of reserves would “disappoint some”, but that “the panic caused by others will help us avoid complex security arrangements.” It’s not a good enough reason to do so,” he added. Investor assets are safe for years.
Grayscale’s flagship fund is Grayscale Bitcoin Trust. GBTC Ticker.Despite Bitcoin trading at a multi-year low of around $16,000, GBTC 45% discount on the underlying asset price.
Bitcoin has fallen 72% in the last 12 months. GBTC posted an 82% loss Same period, as of last Friday. The spread reflects the significant discrepancy between the Trust’s sole holding value and the open market price of the Trust’s shares.
In a statement Friday, Grayscale said each of its digital asset products was established as a “separate legal entity” and reiterated that these digital asset products “are held under the control of Coinbase Custody Trust Company.” rice field.
The company pointed out Letter sent by Coinbase CFO Alesia Haas on Nov. 18It analyzes the accounting of tokens held in Coinbase Custody. Coinbase currently holds approximately 635,235 bitcoins, or $10.2 billion, on behalf of Grayscale.
in a tweetthe company said, “The laws, regulations, and documents that define Grayscale’s digital asset products prohibit lending, borrowing, or otherwise interfering with the underlying digital assets of the product.” ” he added.
Barry Silbert’s Digital Currency Group is the parent company of Grayscale, Genesis, and CoinDesk. last weekthe lending arm of crypto investment bank Genesis Global Trading has suspended the initiation and redemption of new loans.
The bank’s lending arm serves the institutional investor base and is known as Genesis Global Capital. At the end of the third quarter, we had over $2.8 billion in total active loans. According to the company’s website.
CNBC’s Rohan Goswami contributed to this report.
