Gemini putting further pressure on DCG
Investors should pay attention to the ongoing financial distress related to Digital Currency Group (DCG) as the outcome could severely impact crypto markets.
Jan 3rd 2023
In short, if DCG enters bankruptcy, the company could be forced to liquidate its assets. This could force DCG into selling its sizable positions in GBTC and unknown positions in ETHE and other Grayscale trusts. One natural, less liquidity-constrained route to this sale could be to initiate a Reg M, allowing traders to redeem shares at NAV, which would narrow the discounts – this is where the impact will be felt in crypto markets.