Venus1100
Active member
The GBTC stock price usually moves in lockstep with the price of Bitcoin. Last week, however, it was selling at a significant discount. What is the primary cause? The failure of FTX. Yes, we're bringing FTX back into the fray. Since their demise, the crypto market has been hit by a wave of bad news. Bitcoin's price has dropped, which has a direct impact on Grayscale's stock price. This issue eroded investors' trust in cryptocurrency, causing the stock price to fall even further.
To make matters worse, Grayscale refuses to share its reserve proof. Many cryptocurrency exchanges are releasing proof-of-reserve audits in an effort to assuage investors' concerns about the security of their funds. Grayscale, on the other hand, decided not to. They stated in a statement:
”We do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve or other sophisticated cryptographic accounting technique due to security concerns.”
As a result of this statement, GBTC is trading at a 45% discount to its underlying assets. According to their reports, they lost 82% in the same period as BTC lost 72% in a year.
Positive News on Grayscale Bitcoin Trust
As can be seen, GBTC was in trouble until November 21, 2022. It was the result of a series of events. Fortunately, there were some excellent solutions to the problem. To begin, they issued a letter demonstrating that their assets were in good hands. Grayscale stated that their digital asset products are legal entities in their own right. As a result, they are kept in Coinbase's Custody Trust Company.
Following that, the company cited a letter from Coinbase CFO Alesia Haas. The letter details accounting on tokens stored in Coinbase, and it reveals that Coinbase owns approximately 635,235 Bitcoin ($10.2 billion) on behalf of Grayscale. This undoubtedly increased public trust in GBTC.
Cathie Wood, CEO of investment management firm Ark Invest, came out and took a stand in the midst of the chaos. In an interview, she stated that her company still believes in Bitcoin. They remain steadfast in their prediction that Bitcoin will likely reach $1 million by 2030. Ark Invest predicted that Bitcoin would reach $1 million by 2030 in their "Big Ideas 2022" outlook, which was published in January 2022. Countries, they believe, will soon accept Bitcoin as legal tender. She stuck to her prediction, and her company bought $1.4 million in GBTC stock.
Ark currently holds approximately 6.357 million GBTC shares, accounting for 0.4% of the company's total stake. Her bold move boosted confidence in the entire crypto market, resulting in an upward trend on Grayscale.
To make matters worse, Grayscale refuses to share its reserve proof. Many cryptocurrency exchanges are releasing proof-of-reserve audits in an effort to assuage investors' concerns about the security of their funds. Grayscale, on the other hand, decided not to. They stated in a statement:
”We do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve or other sophisticated cryptographic accounting technique due to security concerns.”
As a result of this statement, GBTC is trading at a 45% discount to its underlying assets. According to their reports, they lost 82% in the same period as BTC lost 72% in a year.
Positive News on Grayscale Bitcoin Trust
As can be seen, GBTC was in trouble until November 21, 2022. It was the result of a series of events. Fortunately, there were some excellent solutions to the problem. To begin, they issued a letter demonstrating that their assets were in good hands. Grayscale stated that their digital asset products are legal entities in their own right. As a result, they are kept in Coinbase's Custody Trust Company.
Following that, the company cited a letter from Coinbase CFO Alesia Haas. The letter details accounting on tokens stored in Coinbase, and it reveals that Coinbase owns approximately 635,235 Bitcoin ($10.2 billion) on behalf of Grayscale. This undoubtedly increased public trust in GBTC.
Cathie Wood, CEO of investment management firm Ark Invest, came out and took a stand in the midst of the chaos. In an interview, she stated that her company still believes in Bitcoin. They remain steadfast in their prediction that Bitcoin will likely reach $1 million by 2030. Ark Invest predicted that Bitcoin would reach $1 million by 2030 in their "Big Ideas 2022" outlook, which was published in January 2022. Countries, they believe, will soon accept Bitcoin as legal tender. She stuck to her prediction, and her company bought $1.4 million in GBTC stock.
Ark currently holds approximately 6.357 million GBTC shares, accounting for 0.4% of the company's total stake. Her bold move boosted confidence in the entire crypto market, resulting in an upward trend on Grayscale.
