Grayscale Bitcoin Trust, Largest Traded Cryptocurrency Fund, Hits Record Lows

Web3 continues to go just great too. Molly White:

Grayscale Bitcoin Trust (GBTC), the largest publicly traded crypto fund, hit record lows in the wake of the FTX collapse. The fund was trading at nearly a 50% discount on the underlying Bitcoin asset, as holders rushed to sell off their GBTC holdings.

This was not helped by Grayscale’s response to those in crypto who were pushing Grayscale to follow suit with some other crypto platforms and publish proof of reserves. Grayscale announced that “due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure”. They did not elaborate on what these “security concerns” might be, and stoked fears in some that the company might not have the backing they ought to have.

This is totally normal, on the up-the-up, and doesn’t sound at all like a scam about to fall apart. Just like the rest of the cryptocurrency world.

★ Monday, 21 November 2022