More recently, Grayscale’s Bitcoin (GBTC) fund has plummeted, with the NAV discount falling to a near all-time low of 47%. Prices fell as the cryptocurrency market stalled and attempted to break above resistance levels. It is the largest publicly traded bitcoin fund, and the steep discount marks a period the market is going through.
PriceGBTC | Source: trade zone
Information on TradeBlock shows the decline of the Grayscale Bitcoin Trust. The discount rate has risen over the past few weeks, reaching its highest level since late December 2022. At the time, the discount was 49%.
The FTX debacle played a major role in causing heavy discounts in December. That’s putting a lot of pressure on the fund, though Grayscale could weather the storm if a few kinks can be ironed out now. this.
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Perhaps there’s a reason why hedge funds are bearish on Grayscale’s parent company, Digital Currency Group (DCG). DCG is facing tough times due to the bankruptcy of Genesis, which is one of the biggest stories of the year so far.
DCG sells stake in Grayscale Crypto Trusts
Among them, DCG began to sell shares in Grayscale. This is to help them deal with cryptocurrency company Genesis and their efforts to deal with bankruptcy.
DCG owns about 67 million shares in the GBTC fund, worth about $784 million. However, they only want to sell a few shares of GBTC because it generates a lot of money. It can be said that the company is in a dilemma.
Osprey Funds Files Lawsuit Against Grayscale
Grayscale is also facing its own troubles. Osprey Funds recently filed a lawsuit against Grayscale over “false and misleading advertising” of crypto funds. Osprey Funds also offers crypto investment products.
Additionally, Fir Tree Capital Management asked the Delaware Chancery Court to investigate Grayscale’s apparent mismanagement of client funds. Investors have expressed concern about Grayscale Bitcoin Trust since December.
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According to Beincrypto