Crypto lending firm BlockFi has reportedly liquidated its positions in the Grayscale Bitcoin Trust (GBTC), Bloomberg has learned, citing sources close to the firm.
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Initially, reports said that BlockFi also terminated support for GBTC as a collateral for crypto loans, however, later a spokesperson for the New Jersey-based firm denied this statement.
Although it remains unclear how many GBTC shares were on the BlockFi balance sheet, the move allegedly came after CoinShares Chief Strategy Officer, Meltem Demiror, wrote in a tweet that BlockFi and Three Arrows Capital were holding a "ton" of GBTC on their balance sheet. According to market data, GBTC price since the beginning of the year plunged by over 64% to $12.2.
- In the meantime, Grayscale is gearing up for a fight with the US Securities and Exchange Commission after the watchdog denied the firm's application to turn GBTC into a spot bitcoin-ETF.
- Grayscale CFO, Craig Salm, said the battle might take from twelve months to two years and the final decision on who wins will be up to a panel of three judges.
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