Genesis FUD Subdues As Grayscale Bitcoin Trust (GBTC) Recovers – Crypto News – Crypto News
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Genesis FUD Subdues As Grayscale Bitcoin Trust (GBTC) Recovers – Crypto News

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Grayscale Bitcoin Trust premium rate recovers from -46% to -40% as Cathie Wood’s Ark Invest buying GBTC shares rebuilds confidence in the crypto market. Meanwhile, Binance allocates over $2 billion in BUSD to its Industry Recovery Initiative to help projects recover from liquidity issues following the collapse of crypto exchange ftx.

Will Crypto Market Recover from FTX and Genesis FUD

Cathie Wood’s Ark Invest took an opportunity to purchase GBTC shares twice in a week as the GBTC premium rate fell to -46%, as per CoinGlass data, Cathie Wood scooped 315,259 GBTC shares on November 15 and 176,945 GBTC shares on November 22,

GBTC purchases have restored institutional investors’ confidence in the Grayscale Bitcoin Trust as the premium rate drops to 40%. FTX contagion spreading to its sister trading firm Genesis caused the GBTC premium rate to fall to a record -46%. Genesis and Grayscale are both owned by Digital Currency Group.

DCG and Genesis are currently seeking $500 million in emergency funding, reducing it after facing problems raising $1 billion. Meanwhile, Genesis Global Capital is under investigation by regulators such as the Alabama Securities Commission to find out if the firm violated securities laws.

While Grayscale denied providing proof of reserves For its Grayscale Bitcoin Trust (GBTC), reports claim GBTC has almost 633K Bitcoin held at Coinbase Custody. Some believe the company may dissolve GBTC and ETHE to pay back their lenders.

The cascading effect of FTX continues to decrease as the crypto market continues to rise higher. While bitcoin remains in question, altcoins are witnessing rallies.

Binance Industry Recovery Initiative

The crypto market has also witnessed recovery amid Binance’s Industry Recovery Initiative. Binance CEO “CZ” committed $2 billion in BUSD to the Industry Recovery Initiative, Other companies including Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group committed $50 million in total.

Several crypto exchanges publishing proof of reserves have also brought some positive sentiment as whales buy the dip, Bitcoin price is currently trading at $16,611, up nearly 1% in the last 24 hours. Whereas, Ethereum soars over 3%, with the current price trading at $1,221.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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