Should Bitcoin, Ethereum Investors Fret Over The Grayscale-DCG-Genesis Saga?
The collapse of Sam Bankman-Fried’s crypto empire impacted several divisions of the crypto ecosystem. The retrospective liquidity crunch faced by firms made them halt operations. Crypto lender Genesis was one such victim that paused withdrawals due to the “unprecedented” market turmoil. Post the announcement, Digital Currency Group—the lender’s parent company—clarified that it had no impact on its own operations. However, it is worth noting that Genesis Global served as the liquidity provider for the $6 billion market-capped Grayscale Bitcoin Investment Trust. On its part, the state of the trust’s share price has considerably deteriorated over the past year. Post shrinking by almost 76% in value, GBTC shares closed at $8.29 on 30 December 2022. Source: Google Finance For context, DCG was established in 2015 by billionaire Barry Silbert. Like Grayscale, even Genesis is one of its subsidiaries. In an open letter on Twitter to Silbert, Gemini...