world’s largest bitcoin Shares of the Grayscale Bitcoin Trust (GBTC) fund reached a record low of nearly 50% from the BTC price on Thursday.
Things Are Not Going For Grayscale’s Bitcoin (BTC) Product
GBTC is a way for investors to gain exposure to Bitcoin through a traditional investment vehicle. GBTC was trading at a 47.3% discount rate, according to data from crypto index provider TradeBlock.
Bradley Duke, co-CEO of ETC Group, made the following statements on the subject:
“The fact that Grayscale’s Bitcoin Trust is currently trading at a discount of almost 50% is dire for GBTC holders. It really highlights the huge differences in build quality between different investment vehicles.”
Owned by Grayscale’s parent company Digital Currency Group (DCG) cryptocurrency The negative mood surrounding the trust has deepened further in the past few weeks as fears that trading firm Genesis Global Trading may file for bankruptcy.
Following the collapse of crypto exchange FTX, Genesis Global Trading announced on November 16 that it would stop customer withdrawals from lending unit Genesis Global Capital. Amid speculation about a possible filing for bankruptcy, Genesis said in a note to clients Wednesday that the resolution to its lender freezing withdrawals may be a matter of “weeks”, not days.
GBTC shares have not traded at a higher premium than Bitcoin since March 2021.
Hedge fund Fir Tree on Tuesday said it was suing Grayscale to obtain details about GBTC in order to investigate potential mismanagement and conflicts of interest.
*Not investment advice.
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