The negative premium for the Grayscale Bitcoin Trust Fund expanded to 42.7%, while the Ethereum Fund’s negative premium dropped to 40.12%.
The recent FTX exchange collapse has left many digital asset markets feeling the heat. Several exchanges and lending platforms have been affected by this turn of events, but now even the world’s largest cryptocurrency fund is feeling the brunt of it.
The data reflected that expanded Grayscale Bitcoin Trust Fund’s (GBTC) negative premium was at an alarmingly high of 42.7%. In addition, the Ethereum Fund’s negative premium dropped to a still too-high 40.12%. These results have been record lows for both trust funds according to the research conducted.
GBTC, which owns 3.5% of the world’s Bitcoin, has seen a drop in value as investors are seemingly hesitant to invest in cryptocurrency following the recent FTX crash. However, Grayscale stated that it and its subsidiary DCG were not affected by Genesis’ collapse.
Since Bitcoin hit its All-time high in November, trust investors have lost 83%. Additionally, within the last year alone, prices have dropped 65%.
At the time of this writing, Bitcoin is being traded at an average price of $16,748. The total market capitalization for BTC now stands at approximately $321.7 billion dollars.
Cryptocurrency investors have lost confidence following the implosion of FTX, with the global digital asset market cap dropping below $1 trillion.
On Wednesday, crypto lending platform Genesis suspended its services, worrying Grayscale investors. With more than $50 billion in loans originating from the company last year, its lending arm took a major hit from Three Arrows Capital’s collapse.
Until last month, Genesis had the authority to issue new shares for Grayscale securities. As a subsidiary of Digital Currency Group, it was responsible for issuing new shares for GBTC.