• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Meta Unveils Next-Gen AI Tools and Digital Companions for the Metaverse

2023-09-28

What Is Toncoin (TON)? Everything You Need To Know

2023-09-28

Valentino Rossi Steps into The Sandbox with ValeVerse

2023-09-27
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Meta Unveils Next-Gen AI Tools and Digital Companions for the Metaverse

    2023-09-28

    Valentino Rossi Steps into The Sandbox with ValeVerse

    2023-09-27

    Opportunities for Artists and Creators at Decentraland Music Festival 2023

    2023-09-26

    Hitachi Leverages Metaverse and VR for Next-Generation Workforce Training

    2023-09-25

    Upland and KABOOM! Unite to Address Playspace Inequity

    2023-09-22
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Ripple files motion to block SEC appeal attempt

    2023-09-04

    JP Morgan believes SEC will be forced to approve ETFs after losing case against Grayscale

    2023-09-03

    Ripple Files Motion To Oppose SEC Appeal Over Landmark XRP Ruling

    2023-09-03

    U.S. SEC Punts on Bitcoin (BTC) Spot Exchange-Traded Fund Approvals, Delays Decisions Until October

    2023-09-02

    Navigating the significance of legal opinions in the crypto sphere

    2023-09-02
  • Learn

    What Is Toncoin (TON)? Everything You Need To Know

    2023-09-28

    What is NBA Top Shot? A Beginner’s Guide

    2023-09-22

    What Are Bridges in Crypto? Cross-Chain Bridges, Explained – Cryptocurrency News & Trading Tips – Crypto Blog by Changelly

    2023-09-21

    SingularityNET (AGIX) Price Prediction 2023 2024 2025

    2023-09-18

    What Are Altcoins? Best Altcoins to Buy  – Cryptocurrency News & Trading Tips – Crypto Blog by Changelly

    2023-09-08
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»Research Firm Warns Bitcoin And ETH Investors Over DCG
Bitcoin

Research Firm Warns Bitcoin And ETH Investors Over DCG

2023-01-05No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Renowned crypto firm Arcane Research has issued a warning to Bitcoin (BTC) and Ethereum (ETH) investors in light of the escalating events surrounding Digital Currency Group (DCG), Genesis, and Grayscale. In an article by analyst Vetle Lunde, the firm warns:

Investors should pay attention to the ongoing financial distress related to Digital Currency Group (DCG) as the outcome could severely impact crypto markets.

In the reasoning behind the warning, Arcane Research states that if DCG goes bankrupt, it could be forced to liquidate its assets. “This could force DCG into selling its sizable positions in GBTC and unknown positions in ETHE and other Grayscale trusts,” Lunde said.

Further, the analyst argues that a “natural, less liquidity-constrained” solution could be a Reg M solution that allows holders of Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETH), and the other trusts to redeem shares at net asset value.

This would resolve the near-record NAV – the value by which the fund trades below the Bitcoin spot price. GBTC was trading at -45.35% yesterday, while ETH was at a NAV of -55.83%. Dissolution of the trust via Reg M would trigger tangible impacts on crypto markets, as GBTC comprises about 3.3% of the circulating BTC supply and 2.5% of the ETH supply.

Arcane describes the threat to the market in the massive arbitrage opportunities:

A Reg M would cause a massive arbitrage strategy of selling crypto spot versus buying Grayscale Trust shares. If this scenario plays out, crypto markets could face further downside.

In the long run, however, Arcane Research calls this scenario a positive event, as the crypto market is “finally relieved of the huge burden” caused by the “Grayscale widowmaker trade.” According to Lunde, this could even be the potential final market bottom event.

Bitcoin Facing Final Intrinsic Shock?

As NewsBTC BTC reported, the pressure on DCG is growing day by day. Earlier this week, Gemini founder Cameron Winklevoss published an open letter claiming that Barry Silbert’s DCG was using stalling tactics in bad faith. Winklevoss gave Silbert a deadline of January 8 to return the $900 million in Gemini Earn client funds.

If Silbert does not comply, this could culminate in the coordination of a voluntary DCG Chapter 11 filing, according to Arcane Research. In addition, Valkyrie Investments and $3.5 billion asset manager Fir Tree also took the stage.

Valkyrie made an offer to become the new sponsor and manager of GBTC while announcing the launch of an opportunistic fund to take advantage of GBTC discounts. Fir Tree has filed a lawsuit, presumably in a tactical move to hurt DCG’s valuation and reduce the likelihood of investment by third parties.

At press time, the Bitcoin price stood at $16,817, still lacking volatility.

Bitcoin BTC USD 2023-01-05
BTC / USD, 1-day chart

Featured image from iStock, Chart from TradingView.com

Source link

Bitcoin DCG ETH Firm investors research warns
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

U.S. SEC Punts on Bitcoin (BTC) Spot Exchange-Traded Fund Approvals, Delays Decisions Until October

2023-09-02

Ex-SEC chair Jay Clayton says approval for a spot Bitcoin ETF is ‘inevitable’

2023-09-01

Approval of a Spot Bitcoin ETF in the US Is Inevitable, Says Former SEC Chair Jay Clayton

2023-09-01

Grayscale’s SEC Victory Being Overhyped by Bitcoin Bulls, Says Nicholas Merten – Here’s Why

2023-08-31
Add A Comment

Leave A Reply Cancel Reply

Top Posts

‪Bitcoin Balance On Exchanges Hits New Low Of 2.5 Million

2022-03-19

Nasdaq needs clear regulations before launching crypto exchange, says VP

2022-10-05

AVAX’s long-term revival may be dependent on this zone

2022-04-19

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Meta Unveils Next-Gen AI Tools and Digital Companions for the Metaverse

2023-09-28

What Is Toncoin (TON)? Everything You Need To Know

2023-09-28

Valentino Rossi Steps into The Sandbox with ValeVerse

2023-09-27
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$26,915.00-0.72%
  • ethereumEthereum(ETH)$1,666.930.56%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.000.06%
  • binancecoinBNB(BNB)$215.430.11%
  • rippleXRP(XRP)$0.534.86%
  • usd-coinUSDC(USDC)$1.000.00%
  • Lido Staked EtherLido Staked Ether(STETH)$1,666.150.54%
  • dogecoinDogecoin(DOGE)$0.0620391.02%
  • cardanoCardano(ADA)$0.248227-0.45%