Independent Research Verifies GBTC's Bitcoin 633K: So Why Not Grayscale?

In the wake of the FTX crisis, proof of reserves has been a trending topic, and it seems that when companies are unwilling to provide it, analysts can intervene.

With digital asset management firm Grayscale refusing to provide proof of the reserves of its Grayscale Bitcoin Trust (GBTC), an independent analyst spent days scouring the blockchain to independently verify its holdings.

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OXT Research analyst Ergo used on-chain forensics to confirm that as of November 23, GBTC had approximately 633,000 bitcoins (BTC) held by its custodian, Coinbase Custody.

Grayscale Coins G(BTC) Part 2

In this analysis, we use additional on-chain forensic analysis to CONFIRM the approximate balance of 633,000 BTC held by G(BTC) at Coinbase Custody.

Which begs the question, why is Grayscale refusing to disclose its on-chain holdings? https://t.co/lj7KH5thIf pic.twitter.com/pGMzgomFCp

— ∴Ergo∴ (@ErgoBTC) November 23, 2022

Since the collapse of FTX, there has been increasing pressure on other exchanges and digital asset managers to prove they hold the funds they claim. A collapse of GBTC, or the liquidation of its holdings, would be a serious black swan event. Concerns have been heightened due to Grayscale's relationship with embattled crypto lender Genesis Global Trading, given that both are subsidiaries of venture capital firm Digital Currency Group.

The independent verification of its holdings will give investors a certain level of confidence in the product and t...