The world’s largest cryptocurrency fund has become embroiled in the turmoil swirling around the troubled sector, in a further sign of waning enthusiasm for digital assets.
The share price of the $10.5bn Grayscale Bitcoin Trust (GBTC), which owns 3.5 per cent of the world’s bitcoin, has plummeted to a 39 per cent discount to the value of its underlying assets as investors have embarked on an increasingly desperate scramble to exit.
The blowout means investors in the trust have suffered an 83 per cent loss since bitcoin peaked in November 2021, outstripping the 74 per cent slide in the value of bitcoin itself.
Confidence in digital assets has been sideswiped by the implosion of crypto exchange FTX, the fallout from which is rippling through the near-$1tn industry due to the complex and often opaque linkages between major players.
Fears struck closer to home for Grayscale on Wednesday when crypto broker Genesis Trading, which originated more than $50bn of loans last year, suspended redemptions and originations of loans at its lending arm after suffering financial contagion…