Grayscale Bitcoin Trust (GBTC) Lowest ever discount of 49.20% to the net asset value (NAV) of the underlying asset as of 8 December.
According to ycharts data, GBTC shares are trading at $8.11 with a 47.27% discount.
GBTC discount raises concerns in crypto community
The cryptocurrency community is increasingly interested in GBTC’s record discount deals.
Speculation abounded about the product when sister company Genesis suspended customer withdrawals, citing the implosion of FTX. Their parent company, Digital Currency Group, reportedly owes about $2 billion in debt, much of it to his Genesis.
Lumida Wealth CEO Ram Alwalia claimed The DCG supposedly used its GBTC holdings as collateral for loans with cryptocurrency lenders.
4/ We will focus on Loan #1 here – (the “GBTC Loan”) – DCG has pledged to borrow $575 million of its GBTC holdings from its subsidiary, Genesis Lending. I don’t know the timing.
DCG purchased GBTC for $778 million from March 2021 to June 2022.
— Ram Ahluwalia, Crypto CFA (@ramahluwalia) November 25, 2022
Meanwhile, Grayscale’s refusal to reveal evidence of its Bitcoin (BTC) holdings further spread rumors that it was affected by the FTX implosion. has released a report detailing the assets held on behalf of the investment firm.
Grayscale is facing legal action Investor Fir Tree accused the company of “behavior unfriendly to shareholders.” Grayscale should resume redemptions and cut fees, investors say.
Analysts are divided
Bitcoin analyst Willie Woo said GBTC/DCG/Genesis concerns have cast a bearish cloud over the cryptocurrency market, but the GBTC sale was “counterintuitively… bullish on the BTC price.” ” claims to be.
What GBTC/DCG/Genesis fears is bearish clouds hanging over the market. But counterintuitively, part of the impact was the BTC price bullishness.
37.5% of those who sold GBTC bought physical BTC for safekeeping. Selling GBTC will not affect his BTC price, but buying spot will. https://t.co/wUh5m8OVrm
— Willie Woo (@woonomic) December 5, 2022
Crypto Skeptic Peter Schiff I have written GBTC has lost 74% of its value in 2022 while Bitcoin is down 63%. He added that gold and silver have only lost 2% and 1% of their value over the same timeframe.
in the meantime, Natalie Smolenski, executive director of the Texas Bitcoin Foundation, said this current scenario could have been avoided if SEC Chairman Gary Gensler had approved GBTC’s request to transition to an exchange-traded fund (ETF). I said yes.
If @GaryGensler Approved migration $GBTC For ETFs, this scenario could have been avoided.
Instead, Gensler tried to destroy #bitcoin By Rejecting and Supporting ETFs #FTXthe market was flooded with paper BTC.
This destroyed millions of private investors. https://t.co/KMVNyaR8yf
— Natalie Smolenski (@NSmolenski) November 17, 2022
Smolensky says:
“The state cannot destroy Bitcoin, but it can make life very difficult for ordinary people who seek to take advantage of this new savings technology. Inside, people are collateral victims.”
