On Monday, January 9, the world’s largest Bitcoin fund – the Grayscale Bitcoin Trust (OTCMKTS: GBTC) – jumped by 12% in what seems to be a relief rally after a massive correction.
Amid major events in the crypto space last year, the GBTC share is trading 70% down on the yearly chart and is currently under $10. Monday’s 12% price pump is GBTC’s largest single-day jump since February 2022. Of late, the Grayscale Bitcoin Trust has been performing better than Bitcoin. It has managed to narrow its discount to net asset value to 44% from 49% in the last month.
Yesterday’s rally comes following the Sunday deadline from Gemini co-founder Cameron Winklevoss for DCG and Barry Silbert to “publicly commit to working together” and fix the $900 million of frozen assets by subsidiary Genesis Global.
It seems that the weekend deadline went without any fireworks and Winklevoss didn’t specify what would happen if the agreement didn’t go through. The open letter by Cameron Winklevoss has raised fears that Genesis Global could file for bankruptcy. It has further fuelled concerns regarding the health of the parent group DCG, as well as the future of Grayscale Bitcoin Trust.
Redeem GBTC Campaign In the Works
Despite the current price pump in the shares of Grayscale Bitcoin Trust, it is still trading at a steep 44% discount to spot BTC which can’t be neglected. Furthermore, the furor is growing on this matter and the fact that the fund’s structure doesn’t allow for share redemptions.
Additionally, crypto industry veteran David Bailey launched the redeem GBTC campaign last month which is gaining a lot more traction. As per one of his latest tweets, Bailey said that nearly 20% of GBTC shareholders have joined the effort. He didn’t elaborate much on it though. In his sharp attack at DCG, Bailey wrote:
“DCG sold a fiction to Wall Street. They thought they could never lose control because the shares are distributed so widely across 850k shareholders. They laughed as they pillaged retail and retirees. Little did they know we would fight back. They’ve made 850k enemies.”
The website for Redeem GBTC shows that the goal of the campaign is to reduce the trust’s 2% management fee. They seek to find a path of creating redemptions that “minimizes impact on the Bitcoin market”. Ultimately they want to oust Grayscale as the trust’s overseer.
The post Grayscale Bitcoin Trust (GBTC) Jumps 12% In A Relief Rally, Will It Sustain? appeared first on CoinGape.