Global investment management bank UBS has stated that $11 billion in assets under the management of the Grayscale Bitcoin Trust (GBTC) could pose a threat.
The crypto bear market is known for creating an air of fear over the overall market. Projects in the market are struggling with liquidity and revenue losses. In the crypto industry, the past year has been very challenging and painful. In particular, factors such as the Terra crisis, FTX bankruptcy, the US’s struggle against inflation, and Russia’s moves came to the fore. Among all these processes, Bitcoin continued to exist, although it experienced a price-based decline. However, crypto investors’ anxiety towards the crypto market has not yet subsided. In these uneasy market conditions, a striking statement came from UBS. UBS expressed its unease about GBTC.
UBS Highlights $11 Billion in Grayscale BTC Management
Investment bank UBS has attributed its concerns about the Grayscale Bitcoin Trust (GBTC) to Digital Currency Group (DCG). DCG, the sister company of the Grayscale company, faced the reality of bankruptcy. Short of liquidity, DCG is among the companies affected by the FTX bankruptcy.
In the report prepared by USB, the pressure on GBTC was attributed to the fact that DCG also benefited from these investments. Global investment giant Grayscale holds 633,000 BTC products worth 11 billion dollars. UBS mentioned that this large size could have quite strong effects on the entire market.
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