A bankruptcy catastrophe may overtake FTX on the way.. Grayscale on the verge of bankruptcy By Investing.com

Investing.com – On November 18, Grayscale, the asset manager who runs the world’s largest Bitcoin fund, issued a statement detailing the security of digital asset products and confirming that it will no longer share proof of reserves with clients.

The statement began that, “due to recent events, investors are looking deeper into their investments in,” mildly following the collapse of FTX and the investigation into Sam Bankman Fried’s questionable leadership. In no time, the question on everyone’s lips became clear. Will Grayscale be next?

The answer is that it is unlikely. This is largely because the people at the top who make Grayscale what it is seem to be more competent than Sam Pinkman Fried was.

Let’s look at the facts. It is true and perhaps undeniable that the cryptocurrency industry will deepen again if Grayscale does not fix its balance sheet. And the space simply cannot afford another crash, not so soon after FTX and not after such a major player. Grayscale oversees more than $10 billion each in Bitcoin, Ethereum, and other assets and represents the parent company’s largest Source of revenue.

The parent company of Grayscale — the same one that owns trading company Genesis, mining company Foundry, crypto investment app Luno, and media outlet CoinDesk, among others — is Digital Currency Group, whose founder and CEO Barry Silbert shared a note to Digital Currency Group shareholders. On November 23. Address all the “noise” surrounding the company. He noted that despite the so-called crypto winter, the company was on track to reach $800 million in revenue and that its separate entities were “business as usual”.

“We’ve weathered previous cryptocurrency winters, and while this may sound riskier, we will collectively emerge stronger,” the CEO’s note read.

Silbert is an early Bitcoin evangelist and a true cryptocurrency enthusiast. But, unlike Sam Pinkman Fried, he has 28 years of experience under his belt. Before he discovered cryptocurrencies, he used to be an investment banker in New York and was the CEO of stock trading platform Second Market, which he sold to Nasdaq in 2015. In other words, this isn’t his first rodeo.

Silbert, along with Grayscale’s own leadership, has waged a parallel battle with the US Securities and Exchange Commission after regulators denied its request to convert the Grayscale Bitcoin Trust (GBTC) into a spot exchange fund (ETF), the first in the US. The SEC did this on the basis of “the investment manager’s failure to answer questions about concerns about market manipulation” and poor investment protection, but you could also make the argument that had they accepted the bid, the cryptocurrency would have had an opportunity to “open up.” need more institutional investment” and possibly avoid the current downturn we are experiencing.

Grayscale then filed a petition challenging the decision with the US Court of Appeals for the District of Columbia, and went on to sue the watchdog for what it called an “arbitrary, capricious, and discriminatory” ruling.

In other words: for anyone who cares about the future of cryptocurrencies and believes in the importance of regulators working in good faith to move the industry forward, Grayscale is fighting a good fight.

“The panic created by others is not reason enough to circumvent the complex security arrangements that have kept our investors’ assets safe for years,” Grayscale’s November 18 statement noted. They have proven their value and reputation through a decade long track record of continuous growth. This is unlikely to change anytime soon.