Grayscale refuses to share proof of reserves due to ‘security concerns’ as shares trade at a 45% discount to bitcoin

CNBC ^ | 11/21/2022 | MacKenzie Sigalos

[Presbyterian Reporter]

Grayscale, the asset manager running the world’s largest bitcoin fund, said in a statement Friday that it won’t be sharing its proof of reserves with customers. “Due to security concerns, we do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure,” Grayscale wrote in a statement. Representation of cryptocurrency and Gayscale logo displayed on a phone screen are seen in this illustration photo taken in Poland on November 6, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images) The SEC on Wednesday rejected Grayscale’s application for a spot bitcoin ETF, citing a failure by the investment manager to answer questions about concerns around market manipulation. ---SNIP---

While bitcoin is down 72% over the last 12 months, GBTC has recorded an 82% loss in that same period, as of last Friday. The spread reflects a significant disparity between the value of the trust’s sole holding and the open market price for a share in the trust.

[Presbyterian Reporter]

Another crypto in trouble. Set a new 52 week low this morning.

GBTC 52 Week Range 7.46 11/21/2022 48.34 11/30/2021

[dynachrome]

FTX the domino that sets off the chain reaction?

[dsrtsage]

Is the bloom finally off the tulip?

[Liz]

UT-OH

[Vermont Lt]

Their assets are in a Trust. That trust is held by Coinbase—a publicly traded company that is audited and complies with a whole slew of US regulations.

Grayscale is owned by the Winklevoss brothers. They already have more money from Facebook than they would ever need. They aren’t stealing cash and running away to the Bahamas.

Grayscale is suffering from the FTX effect. But Grayscale is NOT FTX.

[Gaffer]

No that’s not a HUGE trouble sign, is it?

[aMorePerfectUnion]

If YOU would like to be on a CRYPTO PING LIST, please pm me.

The Crypto Ping List covers the following:

Bitcoin
Ethereum
Other coins built on the Ethereum blockchain mining
etc.

Thanks! For it - or ag'in it, it'll be a wild ride.

[aMorePerfectUnion]

Some similarity to closed end funds selling at a discount.

[Presbyterian Reporter]

GBTC—Market Cap $5.8 billion today.

GBTC —Market Cap $36 billion one year ago.

Now that is a $30 billion haircut.

Even the drug cartel money launderers are hurting.

[Gaffer]

Then they should have no problems in getting whoever has the “Trust” to pop up a few pictures of the CASH, GOLD, BEARER BONDS, whatever they have to back all that Crypto crap up, right?

[TexasFreeper2009]

everything about crypto is a fraud.

[Presbyterian Reporter]

From Forbes here is another crypto in trouble-—

Now, fears are swirling that $10 billion bitcoin and crypto giant Digital Currency Group (DCG) could be in trouble after its crypto lender Genesis was forced to pause withdrawals and reports emerged it’s seeking an emergency $1 billion loan.

https://www.forbes.com/sites/billybambrough/2022/11/20/in-huge-trouble-10-billion-earthquake-could-be-about-to-cause-bitcoin-and-ethereum-price-chaos/?sh=5a4ae2462dd2

[aMorePerfectUnion]

That said, buying GBTC at a 43% discount buys bitcoin effectively at under $10k/btc...

It may go lower, but 10K was my benchmark to nibble.

At 5K, I'd buy.

[cpdiii]

Their statement translated into logic = “We ripped you off for your money and the following nations have no extradition treaty with the USA.”
Russia
China
Mongolia
Brunei
The Gulf States. …
Montenegro
EUkraine
Moldova.
South-east Asia: Vietnam, Cambodia, And Laos. …
Island Nations: Maldives, Vanuatu, And Indonesia. …
Africa: Ethiopia, Botswana, And Tunisia.

Most are real crap hole countries. However, Montenegro and Dubai are very nice. Kiev would be high on the list before the war. In Kiev they know how to work with the corrupt. We and your money are probably in Dubai or Montenegro.

[z3n]

On one hand, it makes sense. If I had to tangibly prove I had possession of 3000 gold bars, I could be compromising it’s security.

On the other hand, it seems odd that if blockchain is so secure, why can’t you show what you have?

Artificial scarcity has been an ever increasing method for profitable commerce and I am starting to think this is the latest racket.

I have this because I say I do, but I wont prove it. You can’t get more without paying a lot because I say so, and you can’t prove that you can.

That is no way to trade.

It’s the reason why ‘intellectual property’ has to be protected so aggressively by those who control the source. If it can be easily duplicated, it loses value. Therefore, you have to come up with a clever method of proving ‘authenticity’ and ‘rights’ that itself cannot be duplicated, not really the commodity.

[Presbyterian Reporter]

From Nouriel Roubini-—

Crypto’s Gansta G Gang of Four: Genesis, Grayscale, Galaxy, Gemini

Now all in huge trouble and/or collapsing.

https://twitter.com/Nouriel/status/1593843024340975617

[Trinity5]

Ummm the Winklevoss twins own Gemini, not Grayscale. And they are the biggest owners of Bitcoin if I remember correctly.

[Ingtar]

A bitchain reaction?

[HamiltonJay]

Crypto is a con, period.

Has been since day one.

As long as the bigger fool keeps showing up it will lumber on…

How much longer will they?

[neefer]

You’re one of few FReepers who see this as a bear market opportunity. I’m hoping it goes lower. Until then, I’ll be cleaning my closets and pinching my pennies.