Just-In: Genesis FUD Subdues As Grayscale Bitcoin Trust (GBTC) Recovers
Grayscale Bitcoin Trust premium rate recovers to -46% to -40% after Cathie Wood’s Ark Invest buys GBTC shares. This rebuilds confidence in crypto market. Binance has allocated over $2 billion in BUSD for its Industry Recovery Initiative to assist projects recovering from liquidity issues after the collapse of crypto exchange FTX.
Will the Genesis FUD and FTX Recover the Crypto Market?
Ark Invest purchased GBTC shares twice in a week when the GBTC premium rate dropped to -46% according to CoinGlass data. Cathie Wood snatched 315,259 GBTC share on November 15, and 176,945 GBTC share on November 22.
GBTC purchases have restored institutional investor confidence in Grayscale Bitcoin Trust, as the premium rate has dropped to 40%. The GBTC premium rate dropped to a record -46% due to FTX contagion spreading from Genesis, its sister trading company. Digital Currency Group owns Grayscale and Genesis.
DCG and Genesis are currently looking for $500 million in emergency funds to reduce their debts after they have had trouble raising $1 billion. Regulators such as the Alabama Securities Commission are currently investigating Genesis Global Capital to determine if it violated securities laws.
Grayscale did not provide proof of reserves for Grayscale Bitcoin Trust (GBTC), but reports claim that GBTC has 633K Bitcoin at Coinbase Custody. Some believe that the company could dissolve GBTC or ETHE to repay their lenders.
As the crypto market rises higher, the cascading effect FTX continues its decline. Altcoins are experiencing rallies, even though Bitcoin is still in doubt.
Binance Industry Recovery Initiative
Binance’s Industry Recovery Initiative has also helped the crypto market recover. Binance CEO “CZ”, committed $2 billion in BUSD for the Industry Recovery Initiative. Other companies that contributed $50 million include Brooker Group, Polygon Ventures and Polygon Ventures.
Positive sentiment has also been generated by several crypto exchanges that have published proof of reserves. This is because whales are now buying the dip. Bitcoin is trading at $16,611, an increase of nearly 1% over the last 24 hours. Ethereum is up more than 3% with its current price at $1,221.
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