Grayscale Bitcoin Trust Terminates Significant Agreements with Genesis
Genesis will no longer be involved in GBTC's core operations, but will continue to act as a liquidity provider.
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According to a recent filing with the United States Securities and Exchange Commission (SEC), Grayscale Bitcoin Trust has terminated two agreements with cryptocurrency broker Genesis.
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 the Trust on social media and transfer digital assets to create 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 stepped down, as the company cut its workforce by 20% to cut costs. Earlier, Moro confirmed that Genesis funds were exposed to former cryptocurrency hedge fund Three Arrows Genesis, parent company Digital Currency Group was forced to step in and helped make up for some of the losses.
Grayscale attempted this year to convert its Bitcoin Trust to an exchange-traded fund so that it would no longer be traded on OTC markets. However, his request was denied by the SEC because the proposal failed to demonstrate how it was "designed to prevent fraudulent and manipulative acts and practices".
In response, Grayscale CEO Michael Sonnenshein
Genesis will no longer be involved in GBTC's core operations, but will continue to act as a liquidity provider.
New
According to a recent filing with the United States Securities and Exchange Commission (SEC), Grayscale Bitcoin Trust has terminated two agreements with cryptocurrency broker Genesis.
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 the Trust on social media and transfer digital assets to create 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 stepped down, as the company cut its workforce by 20% to cut costs. Earlier, Moro confirmed that Genesis funds were exposed to former cryptocurrency hedge fund Three Arrows Genesis, parent company Digital Currency Group was forced to step in and helped make up for some of the losses.
Grayscale attempted this year to convert its Bitcoin Trust to an exchange-traded fund so that it would no longer be traded on OTC markets. However, his request was denied by the SEC because the proposal failed to demonstrate how it was "designed to prevent fraudulent and manipulative acts and practices".
In response, Grayscale CEO Michael Sonnenshein
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