This week, all eyes are on Grayscale and Digital Currency Group (DCG). A worst-case scenario could see the world’s largest crypto fund provider liquidate some of its altcoin trusts.
The potential liquidation of Grayscale altcoin trusts could impact the prices of the already battered crypto assets. The DCG is Grayscale’s parent company and is heavily entangled in the FTX collapse contagion.
On Jan. 2, Gemini cofounder Cameron Winklevoss lambasted DCG CEO Barry Silbert over frozen funds. The twin’s exchange lent user funds to Silbert’s troubled Genesis brokerage. Genesis halted withdrawals following a liquidity crunch after FTX imploded.
Fear has now emerged that Grayscale may have to liquidate some of its trust funds to cover Genesis kreditoriai. The firm may start with the underperforming altcoin trusts.
Altcoin Trusts Under Pressure
In addition to its flagship BTC Trust fund (GBTC), Grayscale offers a number of altcoin funds. Not including Ethereum, it has single asset funds for the following altcoins: Pagrindinis Dėmesio ženklas (ŠIKŠNOSPARNIS), Bitcoin Cash BCH () Grandinės jungtis (LINK), Decentraland ir (MANA), Ethereum Klasikinis (ETC), Litecoin (LTC), J. Solana (SOL), žvaigždžių Lumens (XLM), and Zcash (ZEC).
Furthermore, there are a couple of obscure funds, such as Filecoin (FIL), Horizen (ZEN), and Livepeer (LPT).
Analysts have listed the altcoins that would be most impacted. These have been listed in order of Grayscale holdings as a percentage of the coin’s market capitalization.
Source: https://beincrypto.com/these-altcoins-will-be-hammered-if-grayscale-needs-to-liquidate/