Grayscale’s Bitcoin Trust gets $1.5 million from Cathie Wood (ARK).
Did it make touch without sinking? – The cryptocurrency firm Genesis Trading likely had to cease a section of its activities unexpectedly when the FTX market experienced a significant decline. It is crucial to note that the bankruptcy of Three Arrows Capital (3AC) had already affected it by June of last year. As a result, fears of an outbreak quickly spread to other members of the Digital Currency Group (DCG), which included Grayscale Investment. However, it is evident that this does not disturb Cathie Wood’s conviction in Bitcoin, since she recently redeemed shares from her Bitcoin-focused investment fund (GBTC).
Cathie Wood and ARK continue to have faith in Grayscale and its GBTC.
In the setting of the extraordinary hysteria that characterizes the bitcoin market, even the tiniest negative indicator can spark a panic that is out of control. Contrary to what some individuals had hoped for as a form of reassurance, Grayscale Investment n/a did not intend to offer evidence of his BTC reserves for his fund Grayscale Bitcoin Trust (GBTC).
However, some market observers continue to be tormented by dread, uncertainty, and doubt (fear, uncertainty, and doubt). Nonetheless, this is not the case with Cathie Wood.
Indeed, as reported by us and CoinDesk, the founder and CEO of ARK Invest acquired 176,945 GBTC shares on November 21, 2022. This transaction occurred. This purchase costs $1.5 million given the current price of GBTC.
Bitcoins can be purchased in their fictional form for less than $8,800 each.
Before the market volatility caused by FTX last week, ARK Invest had acquired 315,259 shares in Grayscale’s Bitcoin fund. Even though FTX was responsible for the volatility, this occurred. The Cathie Wood company would now have approximately $53 million worth of GBTC, slightly more than 6.35 million GBTC.
About the most recent purchase, which occurred on Monday, the price was marked down by an enormous 45 percent compared to the current market value of bitcoins. Since the market price of Bitcoin fell below $16,000 on November 21, the proportional price of GBTC shares (each of which equals approximately 0.00091 BTC) made it possible to purchase a bitcoin for less than $8,800.
If Grayscale maintains its footing and survives the crypto winter, Cathie Wood’s wager could be profitable on two fronts. Despite this, the Digital Currency Group companies are still far from escaping their current predicament. Be mindful, however, that Gemini, the cryptocurrency exchange owned by the Winklevoss twins, may be able to assist Genesis, the most vulnerable of the three.
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