Statistically sourced from data aggregator YCharts, seven digital currency funds from asset manager Grayscale Investments are presently for a cheap price of 34% to 69% for their internet asset value, or NAV. Holdings tracked within the analysis range from the Grayscale Bitcoin Trust Ethereum Trust, Ethereum Classic Trust, Litecoin Trust, ZCash Trust, Horizen Trust, Stellar Lumens Trust, and Livepeer Trust.
All the funds track the performance of the namesake cryptocurrencies, using the Grayscale Stellar Lumens Trust getting the cheapest discount to NAV at 34% and also the Grayscale Ethereum Classic Trust getting the greatest discount to NAV at 69%.
During the time of publication, the typical discount to NAV shared by funds within the group is 50%. This really is near to the discount worth of the Grayscale Bitcoin Trust (GBTC), the biggest holding with $10.6 billion in digital assets under management only $5.59 billion in shares’ internet liquidation value. Meanwhile, the Grayscale Ethereum Trust, which holds $3.75 billion in Ether (ETH), can also be buying and selling for a cheap price of fiftyPercent.
Related: GBTC ‘elevator to hell’ sees Bitcoin place cost approach 100% premium
Grayscale’s investment vehicles haven’t been approved through the U.S. Registration (SEC) as exchange-traded funds (ETF) and therefore trade over-the-counter (OTC). Formerly, its funds for example GBTC traded confined throughout the crypto bull market because of increased investor demand.
However, a number of setbacks made an appearance to possess inversed the investor sentiment on its investment vehicles. First, the SEC rejected the firm’s application to list out GBTC being an ETF on June 29, citing the proposal unsuccessful to show the way it was “made to prevent fraudulent and manipulative functions and practices.” Grayscale responded having a suit from the SEC that’s ongoing. The firm’s legal officer believed the litigation could require 2 yrs.
Second, Grayscale’s parent Digital Currency Group continues to be hit with insolvency rumors amongst the crypto winter, especially after its subsidiary Genesis Global stopped withdrawals on November. 16, citing “unparalleled market turmoil” associated with the collapse of troubled cryptocurrency exchange FTX.
Finally, Grayscale stopped lacking a complete on-chain disclosure, citing security concerns, as a result of users’ inquiry for any proof-of-reserves audit. The firm rather shared instructions from Coinbase Child custody attesting the need for its holdings. Altogether, Grayscale presently has $14.7 billion price of digital currencies under management in the OTC funds.
