Touched but not sunk? – Following the violent crash of FTXthe crypto-company Genesis Trading must have quite brutally suspend part of its activities. It must be said that it had already been affected by the bankruptcy of Three Arrows Capital (3AC) last June. Thus, a fear of contagion quickly spread to other companies in the Digital Currency Group (DCG), of which Grayscale Investment. But, obviously, this does not affect the confidence of Cathie Wood in the latter, since she has just recently redeemed shares in her fund Bitcoin (GBTC).
Cathie Wood and ARK keep faith in Grayscale and its GBTC
In the mood of strong feverishness of the crypto market, the slightest negative sign can turn into panic totally uncontrolled. And contrary to what some hoped for reassurance, Grayscale Investment n / A did not want to provide evidence on his reserves of BTC for his fund Grayscale Bitcoin Trust (GBTC).
Reasons for security have been mentioned, but the FUD (fear, uncertainty, doubt) reigns for some market observers. This is however not the case for Cathie Woodobviously.
Indeed, as reported by CoinDesk, the founder and CEO of the investment fund ARK Invest added 176,945 shares Grayscale’s GBTC, this Monday, November 21, 2022. This represents a purchase of$1.5 million at the current GBTC price.
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Virtual bitcoins on sale at less than $8,800 each
Despite the turbulence caused by FTX in the crypto-asset market, ARK Invest had already added 315,259 shares of Grayscale’s Bitcoin fund last week. In total, the firm of Cathie Wood would now hold a little more than 6.35 million of GBTC, whose current value is approximately $53 million.
Going back to the most recent purchase made this Monday, it was made with a Huge 45% discount relative to the market value of its underlying bitcoins. So, as the price of Bitcoin fell below the $16,000 on the market on November 21, the proportional price of GBTC shares (which represent approximately 0.00091 BTC each) offered a bitcoin for less than 8,800 dollars!
If Grayscale holds its own and survives this crypto winter, then Cathie Wood’s bet could be doubly winning. However, the companies of the Digital Currency Group are still far from being out of the woods. Note, however, that Genesis, the most in danger of them, may have found one helping hand with the Gemini crypto exchange of the Winklevoss brothers.
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