{"id":517504,"date":"2022-11-29T00:00:00","date_gmt":"2022-11-28T21:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/controlling-shareholders-stakes-in-gbtc-are-highly-illiquid-report\/"},"modified":"2022-11-29T00:00:00","modified_gmt":"2022-11-28T21:00:00","slug":"controlling-shareholders-stakes-in-gbtc-are-highly-illiquid-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/controlling-shareholders-stakes-in-gbtc-are-highly-illiquid-report\/","title":{"rendered":"# Controlling shareholders&#8217; stakes in GBTC are &#8216;highly illiquid&#8217;: Report"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a283f487cd93\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a283f487cd93\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/controlling-shareholders-stakes-in-gbtc-are-highly-illiquid-report\/#%E2%80%9D_Controlling_shareholders_stakes_in_GBTC_are_%E2%80%98highly_illiquid_Report_%E2%80%9C\" >&#8221; Controlling shareholders&#8217; stakes in GBTC are &#8216;highly illiquid&#8217;: Report  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Controlling_shareholders_stakes_in_GBTC_are_%E2%80%98highly_illiquid_Report_%E2%80%9C\"><\/span>&#8221; Controlling shareholders&#8217; stakes in GBTC are &#8216;highly illiquid&#8217;: Report  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNWQxZWFhMDktMTUwZi00MmRlLTgwNjktOTA3NDYxMDkzZTNjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-b8b12140>According to a new <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/twobitidiot\/status\/1597234889136300033\">post<\/a> by Ryan Selkis, CEO of blockchain research firm Messari, Grayscale Bitcoin Trust&#8217;s (GBTC) controlling shareholders Genesis Global and Digital Currency Group cannot simply &#8220;dump&#8221; their holdings to raise more capital. Selkis explained that the restrictions are due to Rule 144A of the U.S. Securities Act of 1933, which forces issuers of over-the-counter, or OTC, traded entities to give advance notice of proposed sales, as well as a quarterly cap on sale of either 1% of outstanding shares or weekly traded volume.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2\/ DCG bought nearly $800mm worth of GBTC shares since the premium flipped to a discount in early 2021.<\/p>\n<p>DCG&#8217;s board authorized up to $1.2bn of share purchases across Grayscale Trusts.<\/p>\n<p>In light of the current liquidity issues, the remainder is likely on hold indefinitely.<\/p>\n<p>\u2014 Ryan Selkis  (@twobitidiot) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/twobitidiot\/status\/1597234889136300033?ref_src=twsrc%5Etfw\">November 28, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Based on calculations provided by Selkis, this works to a maximum of $62 million in liquidations per quarter based on the outstanding shares test and $23 million in liquidations per quarter based on the trading volume test. &#8220;It&#8217;s *much* more likely DCG-Genesis refinance using GBTC as collateral,&#8221; he wrote.<\/p>\n<p>Grayscale Bitcoin Trust, the largest Bitcoin investment trust in the world, is currently trading at a discount to net asset value (NAV) of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ycharts.com\/charts\/fund_chart_creator\/fool\/?calcs=&amp;securities=&amp;startDate=&amp;endDate=&amp;zoom=1&amp;chartView=&amp;title=&amp;note=&amp;partner=fool_590&amp;format=real&amp;recessions=false&amp;units=false&amp;source=false&amp;liveData=false&amp;quoteLegend=true#\/?annotations=&amp;annualizedReturns=false&amp;calcs=id:discount_or_premium_to_nav,include:true,,&amp;correlations=&amp;dateSelection=range&amp;displayDateRange=&amp;displayTicker=false&amp;endDate=&amp;format=real&amp;legendOnChart=false&amp;note=&amp;partner=fool_720&amp;quoteLegend=false&amp;recessions=false&amp;scaleType=linear&amp;securities=id:GBTC,include:true,type:security,,&amp;securityGroup=&amp;securitylistName=&amp;securitylistSecurityId=&amp;source=false&amp;splitType=single&amp;startDate=&amp;title=&amp;units=false&amp;useEstimates=false&amp;zoom=1&amp;chartAnnotations=&amp;chartId=&amp;chartType=&amp;customGrowthAmount=10000&amp;lineAnnotations=&amp;nameInLegend=name_and_ticker&amp;useCustomColors=false\">40%<\/a> due to liquidity issues surrounding its operator Genesis Global and rumors of insolvency surrounding its owner Digital Currency Group.\u00a0It is said that Digital Currency Group bought nearly $800 million worth of GBTC shares since it began trading at a discount to NAV. The firm and its affiliates now own roughly 10% of the trust&#8217;s outstanding shares.<\/p>\n<p>After Genesis Global began halting withdrawals on Nov. 16, rumors began circulating that its parent company Digital Currency Group, was also in a state of insolvency and would need to liquidate GBTC to pay back its creditors. Grayscale has since <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Grayscale\/status\/1593737745364652032\">clarified<\/a> that &#8220;the laws, regulations, and documents that define Grayscale&#8217;s digital asset products prohibit the digital assets underlying the products from being lent, borrowed, or otherwise encumbered&#8221; and that &#8220;the $BTC underlying Grayscale Bitcoin Trust are owned by $GBTC and $GBTC alone.&#8221;<\/p>\n<p>Grayscale also published a letter signed by Coinbase&#8217;s CFO, Alesia Haas, and CEO of Coinbase Custody, Aaron Schnarch, showing that it currently holds 635,235 Bitcoins (BTC) under custody in Grayscale&#8217;s name.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"consulting_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/controlling-shareholders-stakes-in-gbtc-are-highly-illiquid-report\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Controlling shareholders&#8217; stakes in GBTC are &#8216;highly illiquid&#8217;: Report &#8220; According to a new Twitter post by Ryan Selkis, CEO of blockchain research firm Messari, Grayscale Bitcoin Trust&#8217;s (GBTC) controlling shareholders Genesis Global and Digital Currency Group cannot simply &#8220;dump&#8221; their holdings to raise more capital. Selkis explained that the restrictions are due to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":517505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNWQxZWFhMDktMTUwZi00MmRlLTgwNjktOTA3NDYxMDkzZTNjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,76550,117,73711],"class_list":["post-517504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-grayscale","tag-business","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/517504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=517504"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/517504\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/517505"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=517504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=517504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=517504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}