The FTX fallout hit Grayscale, one of the largest crypto asset management firms. Shares of Grayscale Bitcoin Trust (GBTC) are trading at historic lows after news that its sister company, Genesis Global Capital, suspended client withdrawals.
Grayscale is one of the world’s largest digital currency investing and asset management companies. Its Bitcoin Trust allows investors to gain exposure to Bitcoin without needing to purchase, sell or store it in wallets.
GBTC owns 636,696 bitcoins, currently worth $10,6 billion. That’s approximately 3% of the global BTC supply.
The fund itself is trading at a discount from the underlying asset, which was the case even before the FTX collapse. Despite that, it attracted institutional investors that want to gain exposure to Bitcoin, yet prefer holding securities over crypto assets for compliance and security reasons.
However, the spread widened considerably after its sister company,…
