Grayscale

Grayscale owns two of the largest trusts in crypto. GBTC is the largest institutional Bitcoin fund, and EETH is the largest institutional Ethereum fund. Right now, both funds are in terrible condition. Both funds are trading at major discounts, almost 40% of the public trade price. These trusts are used to represent pools of crypto assets traded on CEXs so that retail investors feel more comfortable investing.

This is almost certainly due to the FTX situation. The public has been bombarded with bad event after bad event in crypto news for the past year. Public trust was already at an all time low in cryptocurrency.

Grayscale's situation is notable because of how much BTC and ETH they own. According to ycharts, they current market value of the assets their fund for GBTC holds is 10.49b, down 75% from the ATH at the start of Nov. last year. EETH is 3.7b, down 71.5% since last year. These are MASSIVE holdings of crypto, and both funds are trading at a severe cut from the real value.

Could Grayscale be one of the next dominos to fall and what will the state of crypto look like after that? Some models show $BTC dropping below 13k, which seemed very unrealistic 7 months ago. Sometimes I wonder how much further it can go down. Unfortunately, the market as a whole, even outside of crypto, has been very chaotic due to uncertainty in global politics, supply, and work, to name just a few. The silver lining is this is healthy for the market, and offers an excellent opportunity for retail investors to get rock bottom prices.