Grayscale’s GBTC discount rises above 45%

Decline in Bitcoin Trust (GBTC) quotes from Grayscale Investments relative to NAV reached a record 45.17%. This is evidenced by the data yCharts.

Dynamics of GBTC premium/discount to NAV. Data: yCharts.

Grayscale Investment manages 632,078 BTC worth ~$10.5 billion. This is 3.28% of market capitalization of the first cryptocurrency.

The Ethereum-based trust has a 59.3% discount to NAV.

The company founded by Barry Silbert also manages Ethereum Classic (ETC) worth $190.8 million. This is 8.5% of ETC’s market capitalization. The decrease in quotations relative to net worth in this case is 76.69%.

The GBTC discount began to form at the beginning of 2021, amid the departure of Barry Silbert from the position of CEO.

Dynamics of GBTC premium/discount to NAV. Data: yCharts.

A delay in the approval of the application for the transformation of the structure into an exchange-traded fund (ETF) also contributed to the decline in the bitcoin trust quotes. The head of the company, Michael Sonnenschein, called this task a top priority.

The situation was significantly aggravated by the problems of Genesis Trading that arose after the collapse of FTX. Like Grayscale Investments, the OTC platform is a subsidiary of the Digital Currency Group (DCG).

The crisis resulted in a $900 million debt under the Earn program to clients of the Gemini exchange, which is a partner of Genesis Trading. The co-founder of the trading platform, Cameron Winklevoss, in an open letter urged Barry Silbert to solve the problem by January 8th.

In December, Bernstein analysts suggested the sale of the Grayscale bitcoin trust as a possible scenario for the company’s restructuring process.

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