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Non-Tech : GBTC: Bitcoin Investment Trust (Not an ETF) OTC:QX
GBTC 89.02-1.2%Oct 28 4:00 PM EDT
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To: Glenn Petersen who wrote (226)12/21/2022 3:39:30 AM
From: nicewatch3 Recommendations

Recommended By
Glenn Petersen
roguedolphin
SGJ

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It's hard to see the ETF conversion happening anytime soon as they've been trying for years and the timing couldn't be worse now from a PR perspective with the FTX/Alameda and Scam Bankman-Fried debacle.

Until early 2021 GBTC almost always traded at a premium to NAV and sometimes a rich one. This created a funding mechanism for enterprising crypto funds and investors in the last bull cycle. Buy inside new shares at NAV with a modest fee, hold for the 6 month lockup or whatever it was, and then sell them at the premium markup when the lockup expired. The opposite is happening now with GBTC trading near record discount to NAV.

Even worse, there are rumblings if they hold all the claimed BTC in the first place. They have recently demurred or given inadequate explanations of not providing wallet addresses or other tests against them to verify their ownership claims.

Most importantly, the GBTC structure is a subsidiary of parent DCG which is now known to have financial troubles. If the parent goes under GBTC and its siblings like ETHE get lobbed into the same bankruptcy which then means a court gets to adjudicate the final denouement. That's not a situation I'd take a flyer on right now. Tether, Binance, and DCG may be the last big shoes to drop in this crypto bear, in order of size. Time will tell.
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