GBTC Director insists ‘Holdings of Grayscale’s digital asset products are safe and secure’ – Bitcoin News

On November 18, 2022, at 5:47 PM (ET), the official Twitter account of Grayscale Investments shared information about the safety and security associated with Grayscale’s digital asset products. The update from Grayscale comes on the heels of the recent FTX crash that rattled cryptocurrency investors, with Genesis from Digital Currency Group (DCG) pausing the company’s lending unit in terms of withdrawals and new loan origination.

Grayscale updates to the public with safety and security information – “All digital assets underlying Grayscale’s digital asset products are held by Coinbase Custody,” says Custody.

The FTX fallout caused a ripple effect of fear in the cryptocurrency industry, causing huge amounts of cryptocurrency withdrawals after the event. For example, more than $5 billion worth of bitcoin (BTC) and ethereum (ETH) were withdrawn from exchanges between November 7 to November 14, 2022. The collapse of FTX has also sparked huge interest in proof of reserves concepts, such as Binance, Huobi, and Crypto. com and a slew of other cryptocurrency exchanges have shared wallet addresses over the past two weeks. On Friday, Grayscale Investments chirp Update “On the Integrity and Security of the Assets You Hold” of the Company’s digital asset products.

GBTC manager insists 'Holdings of Grayscale's digital asset products are safe and secure'
On November 18, 2022, Grayscale Investments shared safety and security information associated with the company’s digital asset products.

Grayscale’s announcement comes on the heels of Genesis pausing the company’s lending unit in connection with withdrawals and new loan facilities. Grayscale, like Genesis, is a subsidiary of Digital Currency Group (DCG), and much speculation has surrounded Genesis and its parent company DCG since the draw pause. The Wall Street Journal (WSJ) reported on November 17, 2022, that the WSJ news desk had seen a “confidential fundraising document” that showed Genesis was soliciting investors “for an emergency loan of $1 billion.”

There were many Direct criticism In Grayscale and persons we talk about How the Grayscale Bitcoin Trust (OTCMKTS: GBTC) has turned upside down recently. For example, the GBTC premium or discount on NAV moved from a premium to a discount in March 2022 and has stayed that way ever since. Just above Ark Investment Management, DCG is the largest owner of GBTC in terms of shares held. Grayscale manages 643,572 Bitcoin (BTC), which equates to 3.065% of the maximum bitcoin supply.

“Each of Grayscale’s digital asset products is set up as a separate legal entity: a mutual fund for individual asset products, and an LLC for miscellaneous products,” Grayscale subscriber In an update on Friday. “The laws, regulations, and documents defining Grayscale’s digital asset products prohibit the digital assets underlying the products from being lent, borrowed, or otherwise mortgaged.” Follow Grayscale’s Twitter thread:

All of the digital assets behind Grayscale’s digital asset products are stored under the custody of Coinbase Custody Trust Company, LLC – to be absolutely clear: [bitcoin] The primary owner of the Grayscale Bitcoin Trust is owned by [GBTC and GBTC] lonliness.

Grayscale also added that Coinbase frequently confirms onchain validation, but the company has not publicly disclosed onchain addresses to the general public. “Because of security concerns,” Grayscale said. “We don’t make it like this [onchain] Wallet information and confirmation information are publicly available through encrypted proof of reservation, or other advanced encrypted accounting procedures. “

The company noted that it understands that not sharing Proof of Reserves may be a “disappointment to some,” but Grayscale also stressed that “the panic created by others is not a good enough reason to circumvent the complex security arrangements that have kept our investor 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 of Grayscale’s latest update regarding the safety and security associated with the company’s digital asset products? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is Head of News at News and a financial and technology journalist based 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 News about disruptive protocols emerging today.

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