Genesis Ended Partnership With Grayscale
Grayscale, a subsidiary of Digital Currency Group, is ending its partnership with Genesis to issue fresh shares of its crypto products, including the flagship fund GBTC.
According to a new filing with the Securities and Exchange Commission, Genesis will no longer be responsible for issuing new shares of its crypto fund products, as Grayscale will bring the function in-house, serving as an authorized participant for the products through a new entity, Grayscale Securities.
Grayscale Securities, a registered broker-dealer with the SEC and FINRA members, will be the sole approved participant.
Genesis will continue to act as a liquidity source for the trusts, sourcing Bitcoin holdings.
The shift, which takes effect on October 3, comes amid a rush of Genesis departures following the collapse of crypto hedge fund Three Arrows Capital, against which the broker filed a $1.3 billion claim.
Several Genesis leaders, including former CEO Michael Moro, sales and trading executive Matt Ballensweig, and head of derivatives Joshua Lim, have departed the company in recent months. In August, the broker announced a 20% reduction in its employees.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu