Discount on GBTC shares decreases by 11,56% in 24 hours

10.01.2023 - 12:40

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2 min

What’s new? On January 9, the discount on Grayscale Bitcoin Trust (GBTC) shares from the digital asset management company Grayscale Investments decreased by 11,56% to -38,55% over par. According to Ycharts, the price per share reached $9,65 on Monday, the highest since November 15, 2022.

GBTC chart on the Ycharts website

What is known about Grayscale? This fund was founded in 2013. The company allows US-accredited investors to buy cryptocurrency investment products in a regulated environment through traditional market instruments.

What else is known? The trust’s share price may have been affected by the news of a $3,6 million purchase of GBTC by the US investment bank Morgan Stanley. The deal was carried out by the subsidiary company European Opportunity Fund.

Another possible reason for the rise could be the silence of Gemini crypto exchange co-founder Cameron Winklevoss. On January 2, he demanded an explanation for the prolonged holding of $900 million in client assets at crypto broker Genesis (part of Digital Currency Group, DCG, along with Grayscale Investments). Winklevoss asked DCG CEO Barry Silbert to find a solution by January 8, 2023. By January 10, however, neither party had provided comment on the situation.

In December, it became known that the liquidation of GBTC is seen as one of the options to solve the financial problems of Grayscale. The liquidity crisis of brokerage company Genesis had a negative impact on the crypto market and the parent company. According to analysts at Bernstein, there are only three options to save DCG: raise capital, sell non-strategic assets to save Grayscale, or liquidate GBTC.

For what Genesis’ liquidity crisis threatens the crypto market, read GetBlock Magazine’s article.

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