Share this article
Bernstein Says Grayscale Bitcoin Trust Is Protected From Fallout at Sibling Company Genesis Global
If Genesis is forced to file for bankruptcy, creditors will have no claim on GBTC assets, the report said.
By Will Canny
Updated Nov 21, 2022, 7:55 p.m. Published Nov 21, 2022, 4:30 p.m.
The Grayscale Bitcoin Trust (GBTC) is drawing market attention after sister company Genesis Global Capital said its lending unit would halt customer withdrawals as a result of fallout from the collapse of Sam Bankman-Fried’s FTX crypto empire, Bernstein said in a research report Monday.
The situation at Genesis, however, does not directly affect GBTC, the report said. Even if Genesis is unable to raise liquidity for its lending book and files for bankruptcy, creditors would have no claim on GBTC assets.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Grayscale Investments, which manages GBTC, and Genesis are both owned by Digital Currency Group (DCG), as is CoinDesk.
“GBTC’s trust structure protects its holders and remains ring-fenced from failures within DCG or DCG group entities,” analysts Gautam Chhugani and Manas Agrawal wrote.
The market is concerned that Grayscale could be “considered for strategic options in case of catastrophe,” the note said. But DCG, even in the most adverse scenario, would prefer to hold onto Grayscale over Genesis, it said. Greyscale is DCG’s “flagship business and its cash cow,” generating around $300 million a year in fees, according to Bernstein.
GBTC currently trades at a massive 45% discount to the price of the underlying bitcoin (BTC), the note said, meaning investors are trapped in an investment vehicle they can exit only after a six-month lock-in period and with a significant discount.
GBTC is the largest bitcoin investment vehicle and holds more than $10.5 billion of BTC. DCG and its affiliates own about 10% of GBTC, the note added.
Read more: ‘Grayscale Discount’ Widens to Record 43% as FTX Contagion Spreads
Di più per voi
Cosa sapere:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Di più per voi
XRP Sell Pressure Emerges as Ripple Linked Token Fails to Sustain $2.12 Break
Despite briefly reaching $2.17, XRP failed to maintain momentum, suggesting large holders may be unwinding positions rather than accumulating.
Cosa sapere:
- XRP's trading volume surged nearly 38% above weekly norms, driven by significant institutional activity, yet it underperformed the broader crypto market.
- Despite briefly reaching $2.17, XRP failed to maintain momentum, suggesting large holders may be unwinding positions rather than accumulating.
- The token's inability to hold above $2.12 indicates strong resistance, with continued sell pressure unless it breaks through $2.17 with volume validation.
Top Stories
