Transfer of responsibilities – Grayscale is ending a partnership with cryptocurrency broker Genesis, regarding its Grayscale Bitcoin Trust (GBTC). Bear markets could explain the changes made in the allocation of key roles for the management of the trust.
Grayscale Bitcoin Trust: Genesis shelved, but not too much!
Times are tough and require a cast change. According to an October 3 filing with the SEC, Grayscale Investments restructures its collaboration with Genesisregarding his Grayscale Bitcoin Trust.
Genesis will no longer create new GBTC shares and market them to investors, but it will continue to perform its role as a liquidity provider for Grayscale. Both parties have thus put an end two partnership agreements that have been applied since 2019. The Grayscale Securitieswhich is none other than a subsidiary of Grayscale Investments, takes over.
Despite these structural changes, Grayscale’s CEO, Michael Sonnensheinhighlighted ” positive relationships of his business with Genesis since 2013, while insisting that the broker remains the company’s exclusive liquidity provider.
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Genesis of a new structure because of the crypto winter
These developments are therefore in no way motivated by relational problems. Nevertheless, the current context did not spare Genesis, and the negative consequences of thecrypto winterboth financially and managerially at company level, could thus explain this redistribution of roles.
Genesis CEO, Michael Moro, had resigned in August of this year. Prior to his departure, he had confirmed that Genesis funds had been exposed to Three Arrows Capital which had gone bankrupt. the Digital Currency Groupwhich is the parent company of Genesis and Grayscale, had to step in to make up for the losses.
Given these shocks, the company was forced to dismiss 20% of its staff to be able to face bear markets. More recently, another Genesis director, Matthew Ballensweig, also announced his resignation. From now on, it only has an advisory role.
Grayscale thus adapts to the crypto winter. Considering the context, it redefines the responsibilities of the actors around the Grayscale Bitcoin Trust. But the company doesn’t just play defense. Despite the bear markets, it goes on the offensive by launching a new investment product. He takes advantage of the difficulties currently encountered by some minors.
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