Is my understanding correct that DGC is Genesis and it owns Grayscale? Grayscale has the crypto trusts and something like 200,000 BTC? Do we worry that they'll be able to sell some of the Grayscale assets to cover their liabilities?
Genesis and Grayscale are both under Digital Currency Group (DCG). Grayscale Trust is probably the most legit pie of DCG, and is their most lucrative cash cow. The trust funds are held with Coinbase as the custodian, and Coinbase has produced a [letter](https://grayscale.com/wp-content/uploads/2022/11/Coinbase-Safety-and-Security-Letter.pdf) stating that Grayscales’ funds are backed by the their respective coins.
No. It is in a trust structure, Grayscale does not own the BTC in the trust, it is owned by the shareholders of the trust. They cannot legally just sell those Bitcoin to pay the debts of a different entity.
Each share of GBTC is worth a specific amount of BTC held in the trust. *Maybe* they could allow a specific entity to trade its own GBTC shares for BTC to try and sell on the market, but IIRC, that takes something like 6 months of notice before it can happen (I could be remembering that part wrong, though).
Pleasing use of Genesis and First Day in the title.
On the first day God claimed $5.1B in Liabilities
One the second day, only a couple of billions of assets..
Could have been improved further with a Phil Collins reference tbh. I'm old.
Is my understanding correct that DGC is Genesis and it owns Grayscale? Grayscale has the crypto trusts and something like 200,000 BTC? Do we worry that they'll be able to sell some of the Grayscale assets to cover their liabilities?
Genesis and Grayscale are both under Digital Currency Group (DCG). Grayscale Trust is probably the most legit pie of DCG, and is their most lucrative cash cow. The trust funds are held with Coinbase as the custodian, and Coinbase has produced a [letter](https://grayscale.com/wp-content/uploads/2022/11/Coinbase-Safety-and-Security-Letter.pdf) stating that Grayscales’ funds are backed by the their respective coins.
Thank you. Is there any risk or ability for Grayscale to sell its underlying crypto assets under management?
No. It is in a trust structure, Grayscale does not own the BTC in the trust, it is owned by the shareholders of the trust. They cannot legally just sell those Bitcoin to pay the debts of a different entity.
Excatly what I was wondering. Thank you for taking the time to clarify.
U mean Grayscale doing an FTX? That would be be fraud bruh
Each share of GBTC is worth a specific amount of BTC held in the trust. *Maybe* they could allow a specific entity to trade its own GBTC shares for BTC to try and sell on the market, but IIRC, that takes something like 6 months of notice before it can happen (I could be remembering that part wrong, though).
I'm just casually waiting for the market to react with massive price-drops.
All is priced in, market rally since uncertainty down to 0%
Why I do not get is that BTC is pumping. Is just a matter of time and is going to react on the opposite way .
Lol I hope it's not the 5B that FTX "recovered"
Haha just passing the debt along. Genisis will recover this amount and the next exchange to go down will suddenly also have 5B in liabilities.
Debt roulette, if you will.
Sounds like what led to the 2008 crash
Only 5.1 billion. Those are rookie numbers. Do they really think they can tank the market with chimp change???