Bernstein Report: GBTC Will Be Protected from the Impact of the Genesis Crisis

ChainCatcher news, according to CoinDesk, the well-known American financial advisory firm Bernstein Research released a report stating that the situation of Genesis Global Capital halting withdrawals does not directly affect Grayscale Bitcoin Trust (GBTC). Even if Genesis cannot raise liquidity for its lending book and files for bankruptcy, creditors cannot make claims against GBTC assets.

The report states that the market is concerned that Grayscale may be considered as a strategic option in the event of a disaster, but analysts believe that even in the worst-case scenario, DCG would prefer to retain Grayscale rather than Genesis's business. Bernstein analysts argue that Grayscale is DCG's "flagship business and cash cow," generating approximately $300 million in fee revenue each year. Analysts Gautam Chhugani and Manas Agrawal wrote, "The trust structure of GBTC protects its holders and avoids failures within DCG or DCG Group entities." (CoinDesk)