Grayscale’s Bitcoin Trust has recently attracted the attention of the market as the impending bankruptcy of Digital Currency Group will almost certainly have disastrous consequences for long-term GBTC holders by increasing the fund’s discount to NAV to a record-breaking 70%.
The potential liquidation of DCG’s GBTC holding was discussed at a recent board meeting. Digital Currency Group would be able to pay off some of its liabilities by selling the sizable investment in Grayscale’s trust at a sizable loss.
DCG recently started a critical fundraising campaign to fill a $1 billion hole left on its balance sheets by Genesis’ insolvency. Every available fund on the market rejected such a dubious offer as was to be expected, but DCG claimed it had no choice but to sell off whatever assets it could.
You wouldn’t want a discount
If significant GBTC holders start selling off their holdings, a massive 70% discount to NAV may become a reality, offering a fantastic opportunity for someone who is new to the cryptocurrency market to invest. The situation will, however, be disastrous for long-term shareholders.
Investors would likely have to deal with big losses and sell their holdings to cover their responsibilities in a manner similar to DCG’s even if they bought GBTC in late 2021 at a significant 20% discount.
Prior to this, Grayscale’s Bitcoin holdings were avidly sought after by on-chain sleuths when the market had a trust crisis and every institution in the sector was flagged as potentially insolvent and unreliable.
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
Website: coincu.com
Annie
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Grayscale May Offer 70% Discount On Bitcoin
Grayscale’s Bitcoin Trust has recently attracted the attention of the market as the impending bankruptcy of Digital Currency Group will almost certainly have disastrous consequences for long-term GBTC holders by increasing the fund’s discount to NAV to a record-breaking 70%.
The potential liquidation of DCG’s GBTC holding was discussed at a recent board meeting. Digital Currency Group would be able to pay off some of its liabilities by selling the sizable investment in Grayscale’s trust at a sizable loss.
DCG recently started a critical fundraising campaign to fill a $1 billion hole left on its balance sheets by Genesis’ insolvency. Every available fund on the market rejected such a dubious offer as was to be expected, but DCG claimed it had no choice but to sell off whatever assets it could.
You wouldn’t want a discount
If significant GBTC holders start selling off their holdings, a massive 70% discount to NAV may become a reality, offering a fantastic opportunity for someone who is new to the cryptocurrency market to invest. The situation will, however, be disastrous for long-term shareholders.
Investors would likely have to deal with big losses and sell their holdings to cover their responsibilities in a manner similar to DCG’s even if they bought GBTC in late 2021 at a significant 20% discount.
Prior to this, Grayscale’s Bitcoin holdings were avidly sought after by on-chain sleuths when the market had a trust crisis and every institution in the sector was flagged as potentially insolvent and unreliable.
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
Website: coincu.com
Annie
CoinCu News
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