{"id":73721,"date":"2023-02-07T13:25:12","date_gmt":"2023-02-07T11:25:12","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=73721"},"modified":"2025-09-09T15:49:35","modified_gmt":"2025-09-09T12:49:35","slug":"dcg-begins-selling-stakes-in-grayscale-trusts","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/dcg-begins-selling-stakes-in-grayscale-trusts\/","title":{"rendered":"DCG begins selling stakes in Grayscale trusts"},"content":{"rendered":"

Digital Currency Group (DCG) has begun selling stakes in some of Grayscale Investments\u2019 largest cryptocurrency funds at a steep discount, the Financial Times<\/a> reports, citing the group\u2019s disclosures.<\/p>\n

According to the publication, the conglomerate is seeking to raise funds to shore up Genesis, the crypto-lending arm that collapsed. DCG, meanwhile, aims to preserve its most profitable investment structures, such as Grayscale.<\/p>\n

The lending platform filed for bankruptcy in January. According to reports, Genesis\u2019 liabilities exceed $3 billion. The amount includes more than $900 million owed to clients of the Gemini Earn product.<\/p>\n

In light of the subsidiary\u2019s troubles, DCG halted dividend payments and began weighing the sale of a number of non-core assets, including the industry online publication CoinDesk.<\/p>\n

According to journalists, by January 24 the group, in several deals, liquidated roughly a quarter of its stake in the Grayscale Ethereum Trust for $22 million. The sale price was about $8 per share, while each share represents $16 worth of ETH.<\/p>\n

\n

\u201cThis is simply part of the portfolio\u2019s rebalancing,\u201d DCG commented.<\/p>\n<\/blockquote>\n

The last time the group sold Ethereum Trust shares was in 2021, when they traded near the asset\u2019s nominal value.<\/p>\n

Grayscale charges a 2% management fee, which over the past year generated about $209 million in revenue.<\/p>\n

The flagship Bitcoin Trust holds around 3% of the total supply of digital gold, valued at $14.7 billion. The vehicle charges investors a 2% fee. In the first nine months of 2022, it earned $303 million.<\/p>\n

DCG also placed for sale small blocks of Grayscale fund shares based on Litecoin, Bitcoin Cash, Ethereum Classic and a basket of high-capitalization cryptocurrencies (Digital Large Cap Fund).<\/p>\n

The group does not permit redemptions for the underlying asset, allowing liquidation at nominal value, said Ram Ahluvalia, CEO of Lumida Wealth. This applies to DCG\u2019s own stakes as well.<\/p>\n

The strategy has led to the fund\u2019s quotes trading at a substantial discount to net asset value. For example, in January the discount on the Bitcoin Trust exceeded 45%. Yet this helps maximise revenue from servicing fees, said an expert.<\/p>\n

\n

\u201cClosing the discount would mean abandoning this cash cow,\u201d he added.<\/p>\n<\/blockquote>\n

Earlier, Bernstein analysts suggested that in seeking financing DCG may liquidate the Grayscale Bitcoin Trust.<\/p>\n

The group and its bankrupt subsidiaries have reached a principal agreement with major creditors on the terms of the restructuring plan.<\/p>\n","protected":false},"excerpt":{"rendered":"

Digital Currency Group (DCG) began selling stakes in some of Grayscale Investments\u2019 largest cryptocurrency funds at a significant discount. The Financial Times learned of this from the group\u2019s disclosures.<\/p>\n","protected":false},"author":1,"featured_media":73722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[184,943],"class_list":["post-73721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dcg","tag-grayscale-investments"],"aioseo_notices":[],"amp_enabled":true,"views":"38","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=73721"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73721\/revisions"}],"predecessor-version":[{"id":73723,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73721\/revisions\/73723"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/73722"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=73721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=73721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=73721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}