Граисцале Битцоин Труст (ГБТЦ) тргује на а record-low discount of 49.20% to the underlying assets’ net asset value (NAV), as of Dec. 8.
According to ycharts data, GBTC shares are trading for $8.11 at a discount of 47.27%.
GBTC’s discount raises crypto community concern
The crypto community has become increasingly concerned with GBTC’s record discount trades.
Speculations emerged around the product when its sister company Genesis заустављено withdrawals for customers’ citing FTX’s implosion. Reports later revealed that their parent company Digital Currency Group had debt amounting to roughly $2 billion — with the majority owed to Genesis.
Lumida Wealth CEO Ram Ahluwalia тврди that DCG likely used its GBTC’s holding as collateral for its loan with the crypto lender.
4/ Овде ћемо се фокусирати на зајам #1 – („ГБТЦ зајам“) – ДЦГ је обећао своје ГБТЦ холдинге да позајми 575 милиона долара од подружнице Генесис Лендинг. Не знамо тајминг.
ДЦГ је купио 778 милиона долара ГБТЦ-а од марта 2021. до јуна 2022. ДЦГ је прекинуо куповину након експлоатације 3АЦ, Извор: 10К
— Рам Ахлувалиа, крипто ЦФА (@рамахлувалиа) Новембар 25, 2022
Meanwhile, Grayscale’s refusal to reveal evidence of its Bitcoin (BTC) holdings further fueled rumors that it was impacted by FTX’s implosion. However, its custodian partner Coinbase released a извештај detailing the assets it held on behalf of the investment firm.
Нијансе сиве су facing legal action from investor Fir Tree, which accused the firm of “shareholder-unfriendly actions.” According to the investor, Grayscale should resume redemptions and reduce its fees.
Analysts hold divergent views
Bitcoin analyst Willy Woo has argued that the GBTC/DCG/Genesis fears hang a bearish cloud over the crypto market but selling GBTC is “counterintuitively… bullish for BTC price.”
The GBTC / DCG / Genesis fears is a bearish cloud hanging over the market. But counterintuitively part of the impact has been bullish for BTC price.
37.5% of people who sold GBTC bought spot BTC to take custody. Selling GBTC does not impact BTC price, buying spot does. https://t.co/wUh5m8OVrm
- Вилли Воо (@воономиц) Декабрь 5, 2022
Crypto skeptic Peter Schiff wrote (написано) that GBTC had shed 74% of its value in 2022, while Bitcoin has is down 63%. He added that gold, and silver, have only lost 2% and 1% of their values over the same time frame.
У међувремену, Natalie Smolenski, the executive director of the Texas Bitcoin Foundation, opined that this current scenario could have been avoided if the SEC chair Gary Gensler had approved GBTC’s request to transition into an exchange-traded fund (ETF).
If @ГариГенслер had approved transitioning $ ГБТЦ to an ETF, this scenario could have been avoided.
Instead, Gensler tried to destroy #битцоин by refusing an ETF & propping up #ФТКС, which flooded the market with paper BTC.
This has destroyed millions of retail investors. https://t.co/KMVNyaR8yf
— Натали Смоленски (@НСмоленски) Новембар 17, 2022
Smolenski said:
“The state cannot destroy Bitcoin, but it can make life extraordinarily difficult for ordinary people trying to take advantage of this new savings technology. The people are the collateral damage as incumbent elites scramble to protect their privilege.”
Source: https://cryptoslate.com/grayscales-gbtc-discount-nears-50-as-community-concerns-rises/