© Reuters
Grayscale is in danger: where are the 634,000 bitcoins?
Investing.com – FTX’s fall continues to widen, so it’s no longer just small crypto firms on the verge of bankruptcy after the chain reaction caused by former CEO Sam Bankman Fried.
After learning that the Genesis Global platform was also in trouble and stopped payments, the largest institutional investment vehicle in the cryptocurrency sector, the Grayscale Fund (GBTC), found itself in the spotlight.
Genesis Global is the primary liquidity provider to the Grayscale Bitcoin Fund. Both Genesis and Grayscale are owned by the same parent company, Digital Currency Group (DCG). As a result, Genesis’ liquidity problem is likely to spill over into Grayscale.
The Grayscale Bitcoin Fund currently holds 634,000 BTC, and if sold for cash, the impact would be greater than when Terra collapsed, with only 80,000 BTC being processed at the moment.
DCG said that Genesis is not a service provider for any Grayscale product and that recent events have not impacted the company’s operations.
Similar comments were made a few days ago on FTX.
DCG’s balances were less than its debts, said Ryan Selkis, founder and CEO of cryptoanalysis firm Messari.
Meanwhile, we are entitled to question whether Grayscale really owns 634,000 BTC. There is no real directory, just a CSV data file which is updated once a day.
Written by Marco Uhrl
