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‘Next Domino’s More Volatility’: Grayscale Follows FTX Crash; FACG Trading at 46% Discount

Thread on Grayscale : "Next Domino?" 🚨


Post the FTX blow up, focus is on GBTC which is trading at 46% discount.

With Genesis suspending withdrawals & DCG needing to raise 1bn by Monday, GBTC is more volatile than BTC & ETH atm but what is the truth?

Let's discuss:

What is Grayscale ? It's the largest Bitcoin Trust fund that allows investors to gain Bitcoin

exposure without buying it.

Modelled like SPDR Gold Trust, GBTC value derives from real holdings of BTC and is publicly traded on OTCQX.

Interest for GBTC is at a new ATH !!

Grayscale's holdings:

1. GBTC owns 673k BTC - 3.5% of all the available BTC . Current Value is 10.6bn vs 13.5bn 2 weeks ago.

2. Grayscale also holds 3m ETH . The current calue of Ethereum is 3.6bn vs 4.8bn

3. 106k SOL with Current value 1.4m vs 3.9m

GBTC comparison 2018

VS 2022:

2018 bear market: Grayscale Trust went down 90.5% in 13 months and made a bottom.

2022 bear market: Currently GBTC is down 85% and still in a primary downtrend.

What happens next with all the -ve news (FTX, Genesis etc.)

Why Skepticism?

1. Genesis and Grayscale both have the same parent Company: Digital Currency Group


2. Grayscale ( GBTC ) denied showing proof of Assets holding with cliche: security reasons.

DCG's current exposure:

CEO of DCG Barry Silbert says that there is no risk to the GBTC fund and Genesis is an isolated incident caused by the FTX implosion

However DCG is highly exposed to the Crypto space and to a number of crypt companies that all will have been damaged by the recent events.

The bear market will be having a significant impact on DCGs overall portfolio which includes MANA, XRP and also @coindesk who leaked the Alameida balance sheet.

Either way, Grayscale is claiming to hold 633k BTC .

We will continue to post new information as it arrives under this thread.

Please like and retweet the first tweet of this Thread if you enjoyed the research.

This post is based on this twitter thread.


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