Crypto news: large hedge fund company Grayscale’s leading indirect investment in BTC flies on the stock market but this reduces the discount on Grayscale Bitcoin Trust.
Grayscale is grappling with some legal issues regarding some funds and loans, all solvable but the judiciary has its own timeframe and what’s holding sway in the meantime is the market performance of its flagship financial instrument.
From November to today despite some puzzlement the discount for the Bitcoin product has been at its lowest peak.
Shares of Grayscale Bitcoin Trust (GBTC) flew to an incredible +12% Monday and significantly reduced the discount on Bitcoin.
The stock touched $9.65 and this caused the trust’s discount to the NAV of BTC holdings to go to 38.55% recording the lowest differential in two months.
Grayscale’s instrument gives investors an opportunity to have one foot in Bitcoin without having to buy it directly.
The situation had not experienced this upward swing since early February last year, and the trend net of the legal events seems to be continuing.
The latest news on Grayscale Bitcoin Trust
Digital Currency Group (DCG), the parent company of Grayscale, together with the trust, are the largest Bitcoin holders in the world after creator Satoshi Nakamoto and just above iconic giants such as Elon Musk, the amount is 643,572 units worth $11.1 billion according to the current value of the digital gold.
Market volatility and the technical inability of investors to get back liquidity drove up the discount but Grayscale attempted to change the product by turning it into a spot Bitcoin exchange-traded fund (ETF), according to CEO Michael Sonnenshein, this would give more security to investors but the technical timeframe of the regulators was long and they eventually responded in spades.
Also in this regard last summer, Grayscale filed a complaint against the US Securities and Exchange Commission following yet another negative response for the company’s submission of a Bitcoin ETF.
Those who own GBTC not being able to return capital as it is not provided by the instrument have pushed the company toward introducing a form of liquidity.
It is recent news that Fir Tree Capital Management, a Big Apple hedge fund is also in cahoots with Grayscale for “potential mismanagement and conflicts of interest” while Valkyrie throws an assist to GBTC wanting to enter management by proposing that shareholders may vote to switch from Grayscale to Valkirie itself.
In the meantime, DCG upsets Gemini co-founder Cameron Winklevoss, who turns to Barry Silbert and demands that he “publicly commit to working together” to settle $900 million that Genesis subsidiary of DCG owes Gemini Earn.
Among the allegations he also reports that DCG is allegedly guilty of borrowing $1.7 billion from Genesis (parent to subsidiary), however, this was immediately denied via Twitter by Silbert.
Source: https://en.cryptonomist.ch/2023/01/10/news-about-grayscale-bitcoin-trust/