After the SEC’s disapproval of spot Bitcoin ETFs and the sharp drop in Bitcoin price, Grayscale and associated crypto companies are having a hard time. That’s why Grayscale sells from its funds. CEO Michael Sonnenshein said that Grayscale Bitcoin Trust (GBTC) has sold $7.46 billion worth of shares.
Grayscale divests shares from crypto funds
The change marks the first sale to have occurred on September 25, 2013. So, this also makes it unclear how much has been collected lately. Grayscale has not yet responded to requests for clarification on the subject.
Meanwhile, the company also announced that they sold $1.3 billion worth of Grayscale Ethereum Trust (ETHE), $100 million for Ethereum Classic Trust, and $120 million for Bitcoin Cash Trust.
Cryptocurrency company Grayscale currently owns approximately 630,000 Bitcoins worth $10 billion. He also owns 3 million Ethereum (ETH) worth close to $4 billion. However, its shares are trading at a 50% discount. It is therefore unclear whether all of the trusts were sold.
Barry Silbert’s group of companies is facing a dead end
Grayscale Bitcoin Trust (GBTC) also saw record declines in this process, as did the Grayscale Ethereum Trust (ETHE) product. The firm’s parent company, Digital Currency Group (DCG), dispelled contagion fears after FTX’s shocking collapse. But at the same time, Gemini, another cryptocurrency affiliated with Grayscale, stopped withdrawals. Genesis Global Capital is a company affiliated with Grayscale through the Digital Currency Group.
Meanwhile, Valkyrie Investments offered to buy the trusts last week after some difficulties in Genesis, a subsidiary of Digital Currency Group, which also owns Grayscale. Genesis owes Gemini nearly $1 billion with co-founder Cameron Winklevoss. cryptocoin.com As you follow, Cameron Winklevoss has given DCG founder Barry Silbert until January 8 to resolve the issue. These sales may indicate that there is some kind of solution for this problem. However, details remain unclear at this stage.
The consequences of the collapse of Sam Bankman-Fried’s crypto empire are further compounded when digital asset entrepreneur Cameron Winklevoss accuses his colleague Barry Silbert of “malicious distraction tactics” and funds that Winklevoss says left $900 million in his holding. it got confused. Since the collapse of FTX, customers have been needlessly obscure in their assets.
Gemini Trust Co., founded by Cameron Winklevoss and his twin brother, has stopped repayments on a lending product called Earn, which offers investors the potential to generate up to 8% interest on their digital currencies. It had to do this because of a loan to Genesis Global Capital, one of the companies owned by Barry Silbert’s DCG.