Crypto News

Just-In: Genesis FUD Subdues As Grayscale Bitcoin Trust (GBTC) Recovers

Grayscale Bitcoin Trust (GBTC) premium rate recovers from -46% to -40% as institutional investors including Cathie Wood buys GBTC shares.
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Grayscale Bitcoin Trust premium rate recovers from -46% to -40% as Cathie Wood’s Ark Invest buying GBTC shares rebuilds confidence in the crypto market. Meanwhile, Binance allocates over $2 billion in BUSD to its Industry Recovery Initiative to help projects recover from liquidity issues following the collapse of crypto exchange FTX.

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Will Crypto Market Recover from FTX and Genesis FUD

Cathie Wood’s Ark Invest took an opportunity to purchase GBTC shares two times in a week as the GBTC premium rate fell to -46%, as per CoinGlass data. Cathie Wood scooped 315,259 GBTC shares on November 15 and 176,945 GBTC shares on November 22.

GBTC purchases have restored institutional investors’ confidence in the Grayscale Bitcoin Trust as the premium rate drops to 40%. FTX contagion spreading to its sister trading firm Genesis caused the GBTC premium rate fell to a record -46%. Genesis and Grayscale are both owned by Digital Currency Group.

DCG and Genesis are currently seeking $500 million in emergency funding, reducing it after facing problems raising $1 billion. Meanwhile, Genesis Global Capital is under investigation by regulators such as Alabama Securities Commission to find out if the firm violated securities laws.

While Grayscale denied providing proof of reserves for its Grayscale Bitcoin Trust (GBTC), reports claim GBTC has almost 633K Bitcoin held at Coinbase Custody. Some believe the company may dissolve GBTC and ETHE to pay back their lenders.

The cascading effect of FTX continues to decrease as the crypto market continues to rise higher. While Bitcoin remains under question, altcoins are witnessing rallies.

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Binance Industry Recovery Initiative

The crypto market has also witnessed recovery amid Binance’s Industry Recovery Initiative. Binance CEO “CZ” committed $2 billion in BUSD to the Industry Recovery Initiative. Other companies including Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group commit $50 million in total.

Several crypto exchanges publishing proof of reserves have also brought some positive sentiment as whales buy the dip. Bitcoin price is currently trading at $16,611, up nearly 1% in the last 24 hours. Whereas, Ethereum soars over 3%, with the current price trading at $1,221.

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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