• Home
  • Live Crypto Price
  • Contact
No Result
View All Result
  • Home
  • Live Crypto Price
  • Contact
No Result
View All Result
No Result
View All Result
Home Cryptocurrency

GBTC Manager Insists the ‘Holdings of Grayscale’s Digital Asset Products Are Safe and Secure’ – Bitcoin News

Jamie Redman by Jamie Redman
November 19, 2022
in Cryptocurrency
0 0
0
GBTC Manager Insists the ‘Holdings of Grayscale’s Digital Asset Products Are Safe and Secure’ – Bitcoin News
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


On Nov. 18, 2022, at 5:47 p.m. (ET), Grayscale Investments’ official Twitter account shared information on the safety and security associated with Grayscale’s digital asset products. The update from Grayscale follows the recent FTX collapse that has shaken crypto investors, and Digital Currency Group’s (DCG) Genesis pausing the firm’s lending unit in terms of withdrawals and new loan originations.

Grayscale Updates Public With Safety and Security Information — Custodian Says ‘All Digital Assets That Underlie Grayscale’s Digital Asset Products Are Held by Coinbase Custody’

The FTX fallout has caused a ripple effect of fear in the crypto industry, which caused massive amounts of crypto withdrawals following the event. For instance, over $5 billion worth of bitcoin (BTC) and ethereum (ETH) was withdrawn from exchanges between Nov. 7 to Nov. 14, 2022. The FTX collapse has also fueled great interest in proof-of-reserves concepts, as Binance, Huobi, Crypto.com, and a slew of other crypto trading platforms have shared wallet addresses during the last two weeks. On Friday, Grayscale Investments tweeted an update “about the safety and security of the assets held by” the firm’s digital asset products.

GBTC Manager Insists the ‘Holdings of Grayscale’s Digital Asset Products Are Safe and Secure’
On Nov. 18, 2022, Grayscale Investments shared safety and security information tied to the company’s digital asset products.

Grayscale’s announcement follows the company Genesis pausing the firm’s lending unit as far as withdrawals and new loan originations are concerned. Grayscale, like Genesis, is a Digital Currency Group (DCG) subsidiary, and a lot of speculation has surrounded Genesis and its parent firm DCG since the withdrawal pause. The Wall Street Journal (WSJ) reported on Nov. 17, 2022, that the WSJ newsdesk viewed a “confidential fundraising document” that showed Genesis was reportedly soliciting investors for “an emergency loan of $1 billion.”

There’s been a lot of criticism directed at Grayscale and people talking about how the Grayscale Bitcoin Trust (OTCMKTS: GBTC) is upside down in recent times. For instance, GBTC’s premium or discount to NAV went from a premium to a discount in March 2022 and it has remained this way ever since. Just above Ark Investment Management, DCG is GBTC’s largest holder in terms of shares owned. Grayscale manages 643,572 bitcoin (BTC), which equates to 3.065% of bitcoin’s supply cap.

“Each of Grayscale’s digital asset products is set up as a separate legal entity: an investment trust for single asset products, and limited liability company for diversified products,” Grayscale shared in an update on Friday. “The laws, regulations, and documents that define Grayscale’s digital asset products prohibit the digital assets underlying the products from being lent, borrowed, or otherwise encumbered.” Grayscale’s Twitter thread continued:

All digital assets that underlie Grayscale’s digital asset products are stored under the custody of Coinbase Custody Trust Company, LLC — To be perfectly clear: the [bitcoin] underlying Grayscale Bitcoin Trust are owned by [GBTC and GBTC] alone.

Grayscale further added that Coinbase frequently confirms onchain validation, but the company has never publicly disclosed onchain addresses to the general public. “Due to security concerns,” Grayscale said. “We do not make such [onchain] wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.”

The firm noted that it understands that not sharing proof-of-reserves may be “a disappointment to some,” but Grayscale further stressed, “panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors’ assets safe for years.”

Tags in this story
Ark Investment, Coinbase, coinbase custody, custodian, Digital Currency Group (DCG), GBTC, GBTC Shares, genesis, Genesis Lending, grayscale, grayscale bitcoin trust, Grayscale Investments, Grayscale Investments update, Grayscale products, OTCMKTS: GBTC, update Grayscale Investments, Wall Street Journal

What do you think about Grayscale’s recent update concerning the safety and security associated with the company’s digital asset products? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It





Source link

Previous Post

State Stifles Innovation, Opt Out With Bitcoin – Bitcoin Magazine

Next Post

Data Suggests Bitcoin Holders Remain Steadfast – Bitcoin Magazine

Jamie Redman

Jamie Redman

Next Post
Data Suggests Bitcoin Holders Remain Steadfast – Bitcoin Magazine

Data Suggests Bitcoin Holders Remain Steadfast - Bitcoin Magazine

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving

Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving

May 5, 2022
BOLT12, LNURL And Bitcoin Lightning

BOLT12, LNURL And Bitcoin Lightning

June 20, 2022
Jack Dorsey Muses on Social Media ‘Takeover,’ Ethereum Weaknesses; Plus the Latest in Crypto Mining — Bitcoin.com News Week in Review – The Weekly Bitcoin News

Jack Dorsey Muses on Social Media ‘Takeover,’ Ethereum Weaknesses; Plus the Latest in Crypto Mining — Bitcoin.com News Week in Review – The Weekly Bitcoin News

April 24, 2022
Luna Foundation Acquires An Additional 37.8k Bitcoin Worth $1.5B, Bringing its Total Holdings to 80,394 BTC

Luna Foundation Acquires An Additional 37.8k Bitcoin Worth $1.5B, Bringing its Total Holdings to 80,394 BTC

May 6, 2022
Bitcoin Is Our Weapon In The War Of Ideas

Bitcoin Is Our Weapon In The War Of Ideas

0
Allianz Chief Economic Advisor Predicts Bitcoin Going Higher Amid Inflation

Allianz Chief Economic Advisor Predicts Bitcoin Going Higher Amid Inflation

0
Insurance Considerations For Bitcoin Miners

Insurance Considerations For Bitcoin Miners

0
Becoming A Sovereign Individual With Bitcoin

Becoming A Sovereign Individual With Bitcoin

0
How My Bitcoin Mining Firm Is Surviving Crypto Winter, Again

How My Bitcoin Mining Firm Is Surviving Crypto Winter, Again

June 7, 2023
Zion Social Network Embraces Bitcoin Payments Via Lightning Network For Instant Transactions Through Secure Messaging

Zion Social Network Embraces Bitcoin Payments Via Lightning Network For Instant Transactions Through Secure Messaging

June 6, 2023
Bitcoin 2023 Was A Demonstration Of The Bitcoin Community’s Resilience And Optimism

Bitcoin 2023 Was A Demonstration Of The Bitcoin Community’s Resilience And Optimism

June 5, 2023
Fidelity Investments Has Opened Bitcoin Trading To The Public During Ongoing Banking Crisis

Three Reasons Behind Bitcoin's 2023 Resurgence

June 4, 2023

Recommended

How My Bitcoin Mining Firm Is Surviving Crypto Winter, Again

How My Bitcoin Mining Firm Is Surviving Crypto Winter, Again

June 7, 2023
Zion Social Network Embraces Bitcoin Payments Via Lightning Network For Instant Transactions Through Secure Messaging

Zion Social Network Embraces Bitcoin Payments Via Lightning Network For Instant Transactions Through Secure Messaging

June 6, 2023
Bitcoin 2023 Was A Demonstration Of The Bitcoin Community’s Resilience And Optimism

Bitcoin 2023 Was A Demonstration Of The Bitcoin Community’s Resilience And Optimism

June 5, 2023
Fidelity Investments Has Opened Bitcoin Trading To The Public During Ongoing Banking Crisis

Three Reasons Behind Bitcoin's 2023 Resurgence

June 4, 2023

About Us

We bring you the latest bitcoin news from all over the internet

Categories

  • Cryptocurrency
  • Latest
No Result
View All Result
  • Home
  • Live Crypto Price
  • Contact

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In