Controlling shareholders' stakes in GBTC are 'highly illiquid': Report
"It's net good news for GBTC shareholders and FUD fighting," said Selkis. According to a new Twitter post by Ryan Selkis, CEO of blockchain research firm Messari, Grayscale Bitcoin Trust's (GBTC) controlling shareholders Genesis Global and Digital Currency Group cannot simply "dump" their holdings to raise more capital. Selkis explained that the restrictions are due to Rule 144A of the U.S. Securities Act of 1933, which forces issuers of over-the-counter, or OTC, traded entities to give advance notice of proposed sales, as well as a quarterly cap on sale of either 1% of outstanding shares or weekly traded volume. 2/ DCG bought nearly $800mm worth of GBTC shares since the premium flipped to a discount in early 2021. DCG's board authorized up to $1.2bn of share purchases across Grayscale Trusts. In light of the current liquidity issues, the remainder is likely on hold indefinitely. — Ryan Selkis (@twobitidiot) November 28, 2022 Based on calculations...