Grayscale Ends Bitcoin Trusted Hardware Agreements with Genesis

Genesis will no longer be involved in GBTC's core operations but will continue to act as a liquidity provider.

According to a recent filing with the U.S. Securities and Exchange Commission (SEC), Grayscale Investments has terminated two agreements with cryptocurrency broker Genesis regarding its Grayscale Bitcoin Trust.

First, Genesis will no longer assist Grayscale in the distribution and marketing of Grayscale's shares. Second, beginning October 3, Genesis will no longer be an authorized participant of the trust, but will continue to serve as a liquidity provider for Grayscale. Both agreements entered into force in 2019.

The above responsibilities have since been transferred to Grayscale Securities LLC, a wholly owned subsidiary of Grayscale Investments LLC and a subsidiary of Grayscale Bitcoin Trust. In the past, Genesis has helped Grayscale market trust on social media and transfer digital assets to build trust shares.

However, it appears that Genesis has had a rough time amid the ongoing crypto winter. Last week, Genesis director Matthew Ballensweig announced that he was stepping down and taking on an advisory role. In August, Genesis CEO Michael Moro also resigned and the company cut its workforce by 20% to cut costs. Previously, Moro confirmed that Genesis funds were exposed to former cryptocurrency hedge fund Three Arrows Genesis, and that its parent company, Digital Currency Group, was forced to step in and help fill some of the gaps. losses.

Grayscale attempted this year to convert its Bitcoin (BTC) trust into an exchange-traded fund so that it would no longer be traded on over-the-counter markets. However, his application was rejected by the Securities and Exchange Commission because the proposal failed to demonstrate how it was "designed to prevent fraud and manipulation...