Grayscale Relieves Genesis, Floats New Outfit for its BTC Trust

banner-image

 🦂 $SCORP Pre-Sale Is Almost Sold Out: Famous Casino Launches Token with Daily Staking Rewards - 6 Million Raised with 10,000 Participants! 🚀

Based on a filing by the United States Securities and Exchange Commission (SEC), Genesis is no longer an authorized participant in the Grayscale Bitcoin (BTC) Trust following an agreement by both parties. Genesis which is equally a subsidiary of Digital Currency Group like Grayscale was made the authorized broker-dealer in January 2019. 

However, Genesis will keep serving as a liquidity provider for the asset investment management company. 

Important to realize is that Genesis will be the only liquidity provider for Grayscale for now, according to Grayscale CEO Michael Sonnenshein. There are no plans to onboard any other liquidity providers soon. Genesis will be in charge of purchasing the cryptocurrencies that are underlying Grayscale’s trusts. 

 🎲 Famous Casino Launches Token with Daily Staking Rewards - $6 Million Raised with 10,000 Participants! Pre-Sale is almost sold out 🚀

“The way that we’ve structured all of those kinds of agreements is we can and, at some point, will perhaps access more liquidity providers,” Sonnenshein said. “Today, Genesis remains our sole liquidity provider and we’ve had nothing but a positive relationship with them, going back to 2013, so I can’t see a need to expand.”

The Advent of Grayscale Securities

Therefore, Grayscale investment, one of the largest BTC trust providers, through its newly created broker-dealer unit Grayscale Securities subsidiary will now act as the authorized participant.

It will be bringing a critical administrative role for all of its products in-house. Solely, the investment management firm will be responsible for developing new shares and selling them to investors.

 🦂 $SCORP Pre-Sale Is Almost Sold Out: Famous Casino Launches Token with Daily Staking Rewards - 6 Million Raised with 10,000 Participants! 🚀

Michael Sonnenshein announced that the change will not cause any major change to the Grayscale business, instead, it offers efficiency. Also, the Grayscale customer experience will remain unaffected by this adjustment. 

“What it’s doing is bringing a capability in-house to the Grayscale organization while continuing to adhere to any financial rules and regulations,” Sonnenshein said

Before arriving at this point, Grayscale had wanted to convert its BTC trust to BTC Exchange-Traded Fund (ETF) instead. Rather, it met with delay from the U.S SEC on either an approval or refusal decision. The SEC cited market manipulation, liquidity, and transparency as the cause of the delay.

At the end of it all, SEC rejected the company’s proposal to convert Bitcoin Trust (GBTC) to a full-fledged Exchange Traded Fund (ETF) product.

🎲 Famous Casino Launches Token with Daily Staking Rewards - $6 Million Raised with 10,000 Participants! Pre-Sale is almost sold out 🚀

April 20, 2024

Algotech(ALGT) investors are excited as presale results in massive gains as..

April 20, 2024

DTX Exchange attracts Uniswap and Render investors with its presale, promising..

April 20, 2024

Raboo ICO surges as the Bitcoin halving nears, raising questions on..

ads-image ads-image