{"id":280238,"date":"2022-12-08T12:30:26","date_gmt":"2022-12-08T12:30:26","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=280238"},"modified":"2022-12-08T12:31:06","modified_gmt":"2022-12-08T12:31:06","slug":"grayscales-gbtc-discount-nears-50-as-community-concerns-rises","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/grayscales-gbtc-discount-nears-50-as-community-concerns-rises\/","title":{"rendered":"Grayscale’s GBTC discount nears 50% causing further concern in community"},"content":{"rendered":"

Grayscale Bitcoin Trust (GBTC) is trading at a record-low discount of 49.20% <\/span>to the underlying assets' net asset value (NAV), as of Dec. 8.<\/p>\n

\"Grayscale
Source: Tradingview<\/figcaption><\/figure>\n

According to ycharts data, GBTC shares are trading for $8.11 at a discount of 47.27%.<\/p>\n

GBTC's discount raises crypto community concern<\/h2>\n

The crypto community has become increasingly concerned with GBTC's record discount trades.<\/p>\n

Speculations emerged around the product when its sister company Genesis halted<\/a> withdrawals for customers' citing FTX's implosion. Reports later revealed that their parent company Digital Currency Group had debt amounting to roughly $2 billion \u2014 with the majority owed to Genesis.<\/p>\n

Lumida Wealth CEO Ram Ahluwalia claimed<\/a> that DCG likely used its GBTC's holding as collateral for its loan with the crypto lender.<\/p>\n

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4\/ We'll focus here on Loan #1 – ('GBTC Loan') – DCG pledged its GBTC holdings to borrow $575 MM from subsidiary Genesis Lending. We don't know the timing.<\/p>\n

DCG purchased $778 MM of GBTC from March 2021 thru Jun 2022. DCG stopped purchases after 3AC blow-up, Source: 10Q<\/p>\n

— Ram Ahluwalia, crypto CFA (@ramahluwalia) November 25, 2022<\/a><\/p><\/blockquote>\n