Grayscale Says It May Return 20% Of Investor Capital, Bitcoin Refuses To Budge

1 year ago

Besides the macroeconomic headwinds, erstwhile it comes to crypto, determination are 2 main concerns astatine the moment: Binance and DCG. The concern surrounding Genesis Trading, Digital Currency Group (DCG) and Grayscale, which is inactive unresolved aft a month, is depressing the marketplace sentiment astir Bitcoin.

As reported by the Wall Street Journal, accusation has present leaked retired again which mightiness beryllium a double-edged sword for investors. Grayscale CEO Michael Sonnenshein said the institution would research caller options to instrumentality a information of the Grayscale Bitcoin Trust’s superior to shareholders, arsenic the GBTC presently trades astatine a grounds 49% discount to nett plus worth (NAV).

That enactment is up for statement if the institution fails to person the Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund, according to a missive to investors.

As reported by WSJ, the enactment could see a tender connection for up to 20% of the trust’s $10.7 cardinal outstanding shares. A tender connection would beryllium a nonstop entreaty to shareholders to merchantability their shares astatine a specified terms wrong a specified clip period.

The U.S. Securities and Exchange Commission has repeatedly rejected Grayscale’s applications to person GBTC into a spot ETF, which is wherefore Sonnenshein whitethorn present beryllium considering the move. In June, Grayscale sued the SEC conscionable hours aft its ETF application was rejected. Last week, the SEC responded to the suit for the archetypal time, reiterating its presumption successful a filing.

Grayscale accuses the SEC of treble standards by allowing futures ETFs connected the marketplace and repeatedly rejecting proposals for ETFs that put successful spot Bitcoin. The SEC’s rationale is that futures ETFs are intimately monitored by the Chicago Mercantile Exchange. In contrast, spot Bitcoin ETFs deficiency this level of authorities oversight, the plea states.

What a partial sell-off of GBTC would mean for the marketplace remains to beryllium seen owed to a deficiency of elaborate accusation connected the framework. But the breakup of GBTC, which holds much than 643,000 BTC, is among investors’ biggest concerns.

Meanwhile, Sonnenshein emphasized:

Grayscale products, including GBTC, stay safe, secure, and unencumbered. We stay steadfast successful our content that the conversion of GBTC to an ETF is successful the champion involvement of investors, and we stay 100% committed to that endeavor.

Bitcoin Price Sits Above $16,700

Despite the news, the Bitcoin terms held dependable supra $16,700 astatine property time. As precocious arsenic Friday, the broader crypto marketplace experienced a sell-off aft rumors surfaced that DCG mightiness merchantability assets specified arsenic NEAR, Filecoin, and Ethereum Classic connected a larger scale.

However, isolated from falling prices, determination was nary grounds to backmost this up. Nevertheless, determination were immoderate crypto Twitter analysts speculating astir a sell-off by Grayscale’s genitor company.

Several crypto coins related to Barry Silbert's DCG person been selling disconnected aggressively this evening (FIL, ZEN, ETC, NEAR), leaving galore speculators to wonderment whether the selling is derived from DCG itself. pic.twitter.com/M9mkQrEI7q

— Will Clemente (@WClementeIII) December 16, 2022

At press, the Bitcoin terms was sitting astatine $16,720. Thus, BTC is astatine a captious level. Bitcoin needs to interruption done $16,900 and commencement a continuation to supra $17,300. If determination is nary breakout, past the $16,200 and $15,500 regions should supply support.