The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk markets reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to a new week! Here's what you need to know today in crypto: |
- The Grayscale Bitcoin Trust discount to its NAV has dropped to levels not seen since July 2021.
- Genesis has agreed to settle $1 billion in claims by defunct hedge fund Three Arrows Capital, court documents show.
- JPMorgan said that although digital assets have seen strong gains in the last month, the bullish sentiment may be misplaced.
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CoinDesk Market Index (CMI): 1,458 −0.9%
Bitcoin (BTC): $36,813 −0.6%
Ether (ETC): $2,051 +0.5%
S&P 500: 4,415.24 +1.6%
Gold: $1,942 +0.5%
Nikkei 225: $1,942 +0.5% |
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Grayscale's Bitcoin Trust's (GBTC) discount to its net asset value (NAV) has narrowed to levels not seen since July 2021, data from YCharts shows. The discount to NAV, currently around 10.35%, has been shrinking from a record of almost 50% during the depths of the FTX-induced crypto winter in December last year. Last week, CoinDesk reported that the U.S. Securities and Exchange Commission (SEC) initiated discussions with Grayscale Investments about converting the trust to a spot bitcoin ETF, which, if successful, would provide significant market momentum and liquidity. Bitcoin fund holdings have reached an all-time high, driven by investor enthusiasm over the anticipated approval of a spot bitcoin ETF in the U.S., with total inflows exceeding $1 billion this year, CoinDesk recently reported. Grayscale Investments and CoinDesk are both owned by Digital Currency Group. |
GBTC Advertisement John F. Kennedy Airport (Lyllah Ledesma/CoinDesk) |
Bankrupt crypto lender Genesis has agreed to settle $1 billion in claims by defunct crypto hedge fund Three Arrows Capital (3AC) with a payment of $33 million, court documents show. The hedge fund's collapse in June 2022 marked the first storm in a long crypto winter, and its claims against Genesis refer to transfers made prior to the lender's own bankruptcy in January. The deal, set out in a filing from Nov. 9, follows "extensive negotiations," between the parties, and Genesis is seeking a New York bankruptcy court's go-ahead to settle the claims. "The 3AC Debtor shall receive an allowed general unsecured claim against Genesis in the amount of $33,000,000 in full and complete satisfaction of the more than $1 billion dollars in claims asserted against each of the Genesis Debtors," the document said, adding that the agreement will "mutually release each other from liability." Excitement about the potential approval of spot bitcoin exchange-traded-funds (ETF) has fueled a strong rally in digital assets over the past month, but the move higher seems overdone, JPMorgan (JPM) said in a research report last week. Bullish sentiment has been buoyed by two main arguments, the bank said. "A spot bitcoin ETF approval would help crypto markets to attract fresh/new capital as the newly-approved ETFs see inflows," and the "approval would cement a win for the crypto industry and a setback for the SEC thus making it more likely that going forward the SEC approach towards the crypto industry will soften," analysts led by Nikolaos Panigirtzoglou wrote. |
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Market Insight: Cathie Wood's ARK Sold $6M of Grayscale Bitcoin Trust Shares Amid Rally |
Cathie Wood's ARK Invest sold over 200,000 shares in GBTC on Nov. 10 as the BTC investment vehicle rallied around 10% last week. ARK offloaded 201,047 GBTC shares from its Next Generation Internet ETF (ARKW), according to an emailed update. The shares were valued $6.03 million based on Friday's closing price. GBTC remains the largest holding of ARKW, with a weighting of 9.97% worth about $132 million. The sale followed smaller transactions totaling about $5.7 million over several days earlier in the week. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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