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Grayscale Bitcoin Trust Rolls-up PoRs, Here Are The Details

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Grayscale Bitcoin Trust or GBTC, is the tokenized shares that enables investors to gain exposure to Bitcoin in the form of Security. Or else can be said as GBTC is a type of digital currency investment product that individual investors can buy or sell in their own brokerage accounts.

It is also the world’s largest Bitcoin fund, that only holds Bitcoin. However, its stock price does not mirror the fundamental Bitcoin price.

Grayscale Updated Safety, Security, and Transparency

As per the recent updates, GBTC the largest legal holder of Bitcoin with around 633,000 BTC, sum-ups Proof of Reserves or PoR. On November 19, 2022, Grayscale shared the tweet that noted it can not make a cryptographic proof of reserve from Coinbase Custody publicly available due to security concerns.

According to Grayscale official site, “Coinbase Custody frequently performs on-chain validation as part of their custodian operations. Due to security concerns, we do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.”

Due to the current happenings the investors are requested for information into their crypto investments.

Grayscale clarified that the custody of the digital assets underlying Grayscale’s digital asset products is unaffected, and its products’ digital assets are safe and secure. Balances are reflected in historical public filings and have been evaluated by Grayscale’s third-party auditors.

The firm also mentioned that each of its digital asset products is set up as a separate legal entity: A statutory trust for single asset products, and limited liability company for diversified products.

Additionally, all digital assets that underlie Grayscale’s digital asset products are held by Coinbase Custody Trust Company, LLC (Coinbase Custody) as custodian for each product. 

A letter that verifies the number of digital assets held by Coinbase Custody for each of Grayscale’s digital asset products can be found in the blog post of Grayscale, titled “Safe, Security, and Transparency.”

The investment firm also added that the organizational documents governing each of its digital asset products, as well as the custodian agreement with Coinbase Custody, prohibit the digital assets underlying the products from being lent, borrowed, or otherwise encumbered.

Latest GBTC Updates

Arthur Hayes, Co-Founder of BitMEX, shared a Medium blog post on November 26, 2022, that is part 2 of his series on how investors let the appearance of people cloud their judgment on what is a good or bad investment.

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