Genesis’ extended withdrawal freeze – the lender has told its creditors it will taketo find a solution – continues to weigh on crypto markets, Bernstein said in a research report Thursday.
The “nuclear option” and the least preferred choice for DCG would be a dissolution of GBTC, the report said. DCG could apply forand instead of bitcoin being sold in the open market upon dissolution, it could be exchanged for GBTC shares. That would leave holders of GBTC with bitcoin instead, causing the least market impact. It's unclear, however, that GBTC holders want to own the bitcoin itself as many bought the fund to avoid the hassles of cryptocurrency custody, the report added.
Given the size of loans and illiquid assets, it is likely that the state of the balance sheet would weigh on the residual equity value, Bernstein said. This suggests that any deal would require a more strategic partner to be involved.
Source: Digital Coin News (digitalcoinnews.net)
BernsteinBuzz DCGco BernsteinGautam willcanny99 Say you own 1 BTC. You wanna hold it 5 yrs. But if you sold 1 BTC today & bought GBTC, you could redeem it for 2 BTC sometime in next 5 years after ETF conversion. 2 BTC for 4 BTC, etc. You might not call me a Bitcoiner (I am) but you can't say it isn't smart if it works either.
BernsteinBuzz DCGco BernsteinGautam willcanny99 Coindesk is owned by DCG. I'd rather get information from an independent source on this issue.
BernsteinBuzz DCGco BernsteinGautam willcanny99 How would Reg M change the economics or help fill the balance sheet hole? Wouldn’t it just convert the GBTC to Bitcoin for the holders
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