Michael Sonnenshein Bitcoin Bitcoin Price Coinbase markets Grayscale Michael Sonnenshein Bitcoin Bitcoin Price

GBTC Bitcoin discount nears 50% on FTX woes as investors stock up

Reading now: 518

The largest Bitcoin (BTC) institutional investment vehicle is coming under suspicion as it trades at a record discount.The Grayscale Bitcoin Trust (GBTC) is the latest Bitcoin industry entity to feel the heat from the debacle over defunct exchange FTX.With contagion and fears over a deeper market rout everywhere in Bitcoin and altcoins at present, misgivings are impacting even the best-known — and trusted — crypto industry names.In recent days, it was the turn of GBTC, the long-embattled Bitcoin investment fund, amid problems at a related crypto firm, Genesis Trading.As Cointelegraph reported, parent company Digital Currency Group (DCG), as well as operator Grayscale itself, swiftly sought to reassure investors and the market that its flagship product was financially watertight.This did not appear enough to satisfy nerves, however, leading to additional public declarations of faith in DCG and GBTC.Among them was Coinbase Institutional, the institutional investment arm of major exchange Coinbase. “Nothing is more important than ensuring our clients' assets are safe,” it tweeted on Nov.

17.GBTC’s image has been under strain for some time. Since 2021, it has traded at a discount to the BTC spot price, a discount which is now approaching 50%.Amid a lack of demand, speculation has increased thanks to rumors that Grayscale may end up being bought should Genesis Trading fail.This change of tack could have implications for GBTC, as Grayscale notionally remains intent on converting it to an exchange-traded fund (ETF).“Though this is a difficult moment for many in crypto, I am deeply optimistic about the future of this industry, Grayscale 's business, and the opportunity for investors,” Grayscale CEO, Michael Sonnenshein, tweeted

Read more on cointelegraph.com
The website financemag.cash is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News