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.

[Jumper]

Hang in there and hang on. Crypto is only for disposable income. Those who speculate get screwed these days. Once this all shakes out, the true winner in the Crypto Exchange wars will be Ledger Wallet and Coinbase.

Nobody knew when they started offering interest on their crypto holdings it had become a bank holding about 10% and leveraging the rest.

[Jumper]

We are still here. We who understand every major fund family and all the Central Banks are buying bitcoin. There is a reason the banks hold about 15% of Bitcoin. The banks are issuing new money every day. There is only so much bitcoin.

This is something the believiers, and the deniers, can watch.

Crypto Confidence Collapsing

https://www.youtube.com/watch?v=a3_eobdK8hE&lc=UgwUuWotYDZC5ECa6el4AaABAg.9ihw3kE-AdM9ihxN2MbdSX

https://www.youtube.com/@InvestAnswers -— James is the man.

[SecondAmendment]

> The banks are issuing new money every day.

No doubt.

And even worse, if SBF was running a Federal Reserve Member bank instead of a crypto exchange, he would be have gotten away with what he did, since banks create money from nothing (or close to it) when issuing loans.

For the most part financial service companies have been nothing more than government sanctioned Ponzi schemes pretending to be ethical while using lawfare to protect their criminal enterprises.

IMHO a money system is a political/social contract which must have some appearance of oversight and controls to be acceptable to the masses, and crypto currency by does not by design, relegating it to a niche (and extremely volatile) commodity.