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Grayscale Launches XRP Trust — Cites Potential to Transform Legacy Financial Systems

Grayscale Launches XRP Trust — Cites Potential to Transform Legacy Financial SystemsGrayscale Investments has created a new trust for XRP, allowing accredited investors to gain exposure to the cryptocurrency known for facilitating cross-border transactions. The Grayscale XRP Trust functions like other single-asset crypto investment vehicles, holding only XRP. Grayscale’s head of product highlighted the potential of XRP to transform financial infrastructure. Grayscale Launches XRP Trust for […]

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Is it time for Avalanche (AVAX) price to turn bullish?

Avalanche price gained 16%+ in the last week, but are positive media headlines enough to sustain the AVAX rally?

After spending nearly six months in a downtrend, AVAX price looks to be in the early stages of a trend reversal. On Aug. 5, it traded at $17.29, its lowest price in nine months. Over the past two weeks, the altcoin has reversed course with a 45% gain to $25.25. 


While AVAX’s flash crash under $18 was mirrored by most altcoins which also sharply sold off during Bitcoin’s (BTC) Aug. 18 correction to $49,500, AVAX has been a laggard versus the wider market since topping out at $65 on March. 18. 


Positive news could be partially responsible for the recent uptick in the AVAX price. This week, AVAX investors zoomed in on the Avalanche token unlock schedule and noted that a sharp reduction in the number of token unlock events occurs after the end of 2024. Many investors believe that token unlocks generate sell pressure and deter the various types of long-term ecosystem development that support value accretion to the token. 

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Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Grayscale Launches Decentralized Crypto AI Fund for Accredited Investors

Grayscale Launches Decentralized Crypto AI Fund for Accredited InvestorsGrayscale Investments has announced the launch of the Grayscale Decentralized AI Fund, aimed at providing exposure to blockchain-based artificial intelligence (AI) protocols. The fund, available to accredited investors, includes a basket of decentralized AI crypto protocols, rebalanced quarterly. Grayscale Introduces a Crypto AI Exchange-Traded Product The Grayscale Decentralized AI Fund is designed to offer accredited […]

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Grayscale Leadership Change: Sonnenshein Steps Down — Goldman Sachs’ Peter Mintzberg Appointed New CEO

Grayscale Leadership Change: Sonnenshein Steps Down — Goldman Sachs’ Peter Mintzberg Appointed New CEOCrypto asset manager Grayscale Investments has appointed Peter Mintzberg as CEO, effective August 15, 2024. Mintzberg, currently Global Head of Strategy for Asset and Wealth Management at Goldman Sachs, will also join Grayscale’s Board of Directors. He succeeds Michael Sonnenshein, who steps down to pursue other interests. CFO Edward McGee will serve as interim principal […]

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Grayscale Maintains Steady Revenue Despite Massive GBTC Outflows in Q1

Grayscale Maintains Steady Revenue Despite Massive GBTC Outflows in Q1Grayscale Investments maintained stable revenue in the first quarter despite substantial outflows from the Grayscale Bitcoin Trust (GBTC), its converted spot bitcoin exchange-traded fund (ETF). The firm reported $156 million in revenue, little change from the previous quarter, as stated in a shareholder letter from Digital Currency Group (DCG), its parent company. The conversion of […]

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Grayscale CEO Sees GBTC Reaching Equilibrium, Expects Outflows to Ease

Grayscale CEO Sees GBTC Reaching Equilibrium, Expects Outflows to EaseCrypto asset manager Grayscale Investments believes that GBTC “has started to reach a little bit of an equilibrium,” says CEO Michael Sonnenshein, noting that some anticipated outflows from the firm’s spot bitcoin exchange-traded fund (ETF) are “largely behind us.” The crypto asset manager also expects GBTC’s fees to come down “as markets mature.” Grayscale’s CEO […]

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Crypto exchange FTX gets nod to sell $873M of assets to repay creditors

Nearly $700 million of the $873 million trust assets allowed to be sold by FTX comes from Grayscale’s flagship product, the Grayscale Bitcoin Trust, or GBTC.

Bankrupt crypto exchange FTX has been given the green light to sell around $873 million of trust assets, with proceeds used to repay creditors impacted by the exchange’s collapse in 2022, according to a Nov. 29 filing in a Delaware bankruptcy court.

The $873 million in assets will be sourced from FTX’s stakes in various trusts issued by crypto asset manager Grayscale Investments, valued at $807 million, and custody service provider Bitwise — valued at $66 million.

While the court document references a total of $744 million in assets — this is due to the valuation figure being as of Oct. 25, 2023. The assets have increased in value since. 

Order authorizing FTX Trading to sell trust assets. Source: Kroll

The approval comes nearly four weeks after FTX debtors filed a motion to Judge John Dorsey on Nov. 3 requesting the sale of the six cryptocurrency trusts — including the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Bitwise 10 Crypto Index Fund (BITW).

FTX currently owns over 22 million units of GBTC, Grayscale’s flagship Bitcoin product, now worth $691 million, while its 6.3 million shares of ETHE are now worth around $106 million.

Grayscale’s Ethereum Classic Trust (ETCG), Litecoin Trust (LTCN) and Digital Large Cap Trust (GDLC) are the three other trusts that FTX can now sell to recoup funds for impacted FTX customers.

FTX's shares in Grayscale and Bitwise were worth $744 million as of Oct. 25, but the valued has increased since. Source: Kroll

FTX’s administrators, headed by John. J Ray III, has been working to recover assets since Sam Bankman-Fried’s former empire collapsed in November 2022.

So far, around $7 billion in assets has been recovered, with nearly half of that coming in the form of cryptocurrencies ($3.4 billion).

In June, FTX’s debtors estimated the total amount of customer assets misappropriated was $8.7 billion.

Related: FTX Foundation staffer fights for $275K bonus promised by SBF

Meanwhile, Bankman-Fried was convicted on seven fraud-related charges on Nov. 2 and is set to be sentenced on March 28.

He remains in Brooklyn’s Metropolitan Detention Center for the time being, where he recently paid four mackerels in exchange for a haircut.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Grayscale ETH futures ETF a ‘trojan horse’ for spot Ethereum ETF: Analyst

Bloomberg ETF analyst James Seyffart thinks Grayscale’s Ether futures ETF application is just a ploy to corner the SEC to approve its spot Ether ETF.

Grayscale Investments is using its Ether (ETH) futures exchange-traded fund (ETF) application as a “trojan horse” to corner the United States Securities and Exchange Commission into approving its spot Ether ETF, says Bloomberg ETF analyst James Seyffart.

Seyffart said in a Nov. 15 X (Twitter) post following the SEC delaying Grayscale’s ETH futures ETF bid that he believes if the SEC approves Grayscale’s application, then it would enable Grayscale to argue for the approval of its spot Ether ETF application.

If the SEC denies Grayscale’s bid, the asset manager could argue the SEC is treating Bitcoin (BTC) and Ether futures ETFs differently by allowing one under the Securities Act of 1933 but not the other.

“Watch [the SEC] try to either approve and argue why this is different from spot. Or Deny and argue why 1933 act products are meaningfully different from 1940 act products. Both are bad for SEC [in my opinion]. Genius move.”

Grayscale’s Ether futures ETF bid was submitted via a form 19b-4 — which exchanges file to inform the SEC of a security-based swap request. Seyffart said none of the 40 or so approved Ether ETF products went through the 19b-4 approval process.

Seyffart was initially unsure why Grayscale filed its Ether futures ETF via a 19b-4. He now believes Grayscale is playing “chess” with the SEC by using the Ether Futures ETF as a “trojan horse” to obtain a 19b-4 order from the regulator to corner them into a lose-lose situation.

Seyffart and Scott Johnsson, General President at Van Buren Capital General, agreed Grayscale wouldn’t launch the Ether futures ETF.

“Doubtful this product ever trades, but useful as a vessel to get spot ETH over the finish line,” Johnsson said.

Related: Bitcoin ETFs will drive institutional adoption in 2024 — Galaxy Digital’s Mike Novogratz

Seyffart’s comments come as the SEC delayed its decision on Grayscale’s Ether futures ETF on Nov. 15 — two days earlier than its Nov. 17 deadline. Seyffart said he wasn’t surprised by the delay.

Hashdex’s application to convert its Bitcoin futures exchange-traded fund (ETF) into a spot product was also put on hold by the securities regulator on Nov. 15.

BlackRock shared a similar sentiment to Seyffart last week, arguing that the SEC doesn't have a legitimate reason to treat cryptocurrency spot and futures ETF applications differently.

Magazine: Bitcoin ETF optimist and Worldcoin skeptic Gracy Chen: Hall of Flame

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Grayscale GBTC discount falls to 16% as markets bet on Bitcoin ETF approval

Some analysts say GBTC’s discount is narrowing because investors are pricing in the SEC’s approval on several pending spot Bitcoin ETF applications.

Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC) is trading at its lowest discount in nearly two years, as spot Bitcoin ETFs continue to inch toward potential approval in the United States.

The latest data from YCharts shows GBTC’s discount to Bitcoin net asset value (NAV) has narrowed to 15.87% as of Oct. 13.

Discount to net asset value (NAV) is a percentage that measures the amount that a mutual fund or ETF is trading below its net asset value. The metric is used to track how far away a security is trading away from its true value.

Data shows that GBTC’s discount began to narrow when BlackRock and several other financial institutions filed spot Bitcoin ETF applications in mid-June, where the discount fell from 44% on June 15 to 26.7% by July 5. Since then, the figure has continued to narrow.

GBTC’s Discount to NAV chart over the last 12 months. Source: YCharts

The last time GBTC’s discount was at a similar level was in early December 2021 — only a month after BTC hit its all-time high price of $69,000 on Nov. 10, according to CoinGecko.

Bitcoin advocate Oliver Velez believes the market is pricing in spot Bitcoin ETF approval by year's end.

Other analysts, such as cryptocurrency investor Lyle Pratt believe GBTC’s discount will continue to “evaporate” over the next week or two as spot Bitcoin ETFs near approval.

Reports emerged that the SEC wouldn’t appeal the Grayscale decision on Oct. 13, leading to Bloomberg ETF analyst James Seyffart referring to spot Bitcoin ETF approvals as a “done deal” in an Oct. 13 post.

Related: ETF filings changed the Bitcoin narrative overnight — Ledger CEO

On Oct. 15, Grayscale reportedly delivered a statement noting that the SEC’s 45-day period to seek a rehearing had passed, meaning the court would issue its “final mandate” within seven calendar days.

"The Grayscale team remains operationally ready to convert GBTC to an ETF upon the SEC’s approval, and we look forward to sharing more information as soon as practicable," the company reportedly said.

Cointelegraph reached out to Grayscale for comment but did not receive an immediate response.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In

Crypto community reacts to Biden’s proposed crypto tax reporting rules

Many prominent crypto commentators are concerned that this will make crypto firms even more reluctant to do business in the United States.

Several prominent crypto commentators have criticized the new crypto tax reporting rules recently put forth by United States president Joe Biden. 

On Aug. 25, in an effort to catch crypto users avoiding taxes, the Internal Revenue Services (IRS) proposed brokers follow new rules for selling and trading digital assets. Brokers would use a new form to make tax filing easier and prevent cheating on taxes.

The Treasury indicated that the proposed rules would make digital asset reporting similar to reporting on other kinds of assets.

However, many in the crypto community believe the stringent rules will push the crypto industry even further away from the U.S.

Messari CEO, Ryan Selkis was among those who responded unfavorably to the news, believing that if Biden secures re-election, the crypto industry will not flourish in the country. 

Likewise, Chris Perkins, president of crypto venture firm CoinFund holds the viewpoint that other countries have surged ahead of the U.S., and these rules will inevitably result in reduced innovation flowing into the country.

Rather than resorting to harsh crackdowns, he believes that simple and detailed rules that will allow safe innovation across the crypto industry is needed.

Meanwhile, others remain skeptical that neither the Democrats or the Republicans would adequately champion crypto interests in the U.S.

“I'm not confident that either party would be good for crypto. Though it definitely feels worse now than last presidency,” one user stated, as another pointed that the new rules raise privacy concerns:

“US devotion to income tax means they can NEVER accept private transactions on public ledgers without tax and sanction surveillance.”

On Aug. 25, Cointelegraph reported that Kristin Smith, CEO of the Blockchain Association, held reservations about merging digital asset reporting with traditional assets.

“It’s important to remember that the crypto ecosystem is very different from that of traditional assets, so the rules must be tailored accordingly and not capture ecosystem participants that don’t have a pathway to compliance," Smith stated.

This follows Biden’s suggestion to impose taxes on crypto mining in order to decrease mining operations. 

In a budget proposal dated March 9, it was proposed that there would be an "excise tax equal to 30 percent of the costs of electricity used in digital asset mining.”

Related: US crypto's future could fall on these 4 digital asset bills

The crypto industry in the U.S. has repeatedly voiced concerns about regulatory choices affecting innovation within the nation.  

On Aug. 13, Grayscale Investments CEO Michael Sonnenshein warned that the Securities and Exchange Commission (SEC) constantly resorting to enforcement action will drive crypto firms out of the country.

“If every crypto issue needs to go to a court of law, then as a country, we are squashing the innovation taking place here,” Sonnenshein stated.

In the same vein, Brad Garlinghouse, CEO of Ripple, recently indicated that the crypto industry is shifting away from the U.S. due to its slower crypto regulation process compared to other countries like Australia, United Kingdom and Singapore. 

Magazine: Recursive inscriptions: Bitcoin ‘supercomputer’ and BTC DeFi coming soon

Bitcoin Taps $84,995 All-Time High: Market Cap Hits $1.68 Trillion as FOMO Sets In