Grayscale Investments, a leading provider of cryptocurrency exposure products, announced today that its founder and CEO Barry Silbert has stepped down as chairman of the board. He will be succeeded by Mark Shifke, who has been serving as the chief financial officer of Grayscale’s parent company, Digital Currency Group (DCG).
The move comes as Grayscale is awaiting a decision from the U.S. Securities and Exchange Commission (SEC) on its application to convert its flagship Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF). GBTC is currently the largest publicly traded bitcoin investment vehicle, with over $40 billion in assets under management.
Silbert, who launched Grayscale in 2013, said he will remain involved with the company as a board member and a shareholder. He said he decided to step down as chairman to focus on his role as the CEO of DCG, which oversees a portfolio of more than 160 companies in the crypto space.
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“I’m incredibly proud of what we’ve built at Grayscale and the role we’ve played in bringing bitcoin and other digital assets to the mainstream,” Silbert said in a press release. “I’m confident that Mark is the right person to lead Grayscale as it continues to grow and innovate in this rapidly evolving industry.”
Shifke, who joined DCG as CFO in 2016, has over 30 years of experience in finance, accounting, tax, and business development. He previously held senior positions at Green Dot Corporation, JPMorgan Chase, and Capital One.
“I’m honored and excited to take on this new responsibility at Grayscale,” Shifke said. “I look forward to working with our talented team, our valued investors, and our trusted partners to deliver on our mission of providing access and exposure to the digital asset class.”
Grayscale’s application to turn GBTC into a spot ETF is one of several that are pending before the SEC, which has yet to approve any bitcoin ETFs in the U.S. market. A spot ETF would allow investors to buy and sell shares that directly track the price of bitcoin, without the premium or discount that GBTC often trades at.
Cathie Wood’s ARK sold off its entire GBTC position
In a surprising move, Cathie Wood’s ARK Investment Management has sold off its entire stake in Grayscale Bitcoin Trust (GBTC), the largest publicly traded bitcoin fund. The decision comes amid a sharp decline in the price of bitcoin, which has lost more than 40% of its value since its peak in November.
ARK, which is known for its bullish outlook on disruptive technologies and innovation, had been one of the most prominent institutional investors in GBTC, holding more than 8.5 million shares as of September 30, 2023. According to its latest filings, ARK sold all of its GBTC shares in the fourth quarter of 2023, worth about $300 million at the time of sale.
The reasons behind ARK’s exit from GBTC are not clear, but some analysts speculate that it could be related to the fund’s high fees, lack of liquidity, and persistent trading at a discount to its net asset value (NAV). GBTC charges a 2% annual fee, which is higher than most other bitcoin products and ETFs.
Moreover, GBTC shares are not redeemable for bitcoin, meaning that investors have to sell them on the secondary market, often at a lower price than the underlying bitcoin. As of December 27, 2023, GBTC was trading at a 15% discount to its NAV, according to data from YCharts.
Another possible factor that could have influenced ARK’s decision is the increasing competition from other bitcoin products and ETFs, which offer lower fees, higher liquidity, and closer tracking of bitcoin’s price. In October 2023, the U.S. Securities and Exchange Commission (SEC) approved the first bitcoin futures ETFs, which trade on major stock exchanges and have attracted billions of dollars in inflows.
ARK has invested in some of these ETFs, such as the ProShares Bitcoin Strategy ETF (BITO) and the VanEck Bitcoin Strategy ETF (XBTF), which charge 0.95% and 0.65% in fees, respectively.
While ARK’s departure from GBTC may signal a loss of confidence in the fund or in bitcoin itself, it does not necessarily mean that ARK is bearish on the cryptocurrency sector as a whole. ARK still holds shares in Coinbase (COIN), the largest U.S.
cryptocurrency exchange, as well as in other companies that are involved in or benefit from blockchain technology and innovation. ARK also recently launched its own blockchain and innovation ETF (ARKB), which invests in companies that are developing or using blockchain-based technologies across various industries.
ARK’s founder and CEO, Cathie Wood, has been vocal about her positive outlook on bitcoin and cryptocurrencies, calling them “the first global digital money” and “a new asset class”. In November 2023, she said that she expects bitcoin to reach $500,000 in the next five years, and that she believes that institutions will allocate up to 5% of their portfolios to cryptocurrencies. She also said that she views the recent volatility in bitcoin’s price as a “healthy correction” and an opportunity to buy more.
It remains to be seen whether ARK’s exit from GBTC will have a significant impact on the fund or on the broader cryptocurrency market. GBTC still has more than $20 billion in assets under management and more than 650,000 bitcoins in its trust, making it one of the largest holders of the cryptocurrency.
However, GBTC may face more pressure from investors who are looking for cheaper and more efficient ways to gain exposure to bitcoin, especially as more products and ETFs become available in the market.
Grayscale said it believes that a spot ETF would provide significant benefits to investors, such as enhanced liquidity, lower fees, and greater transparency. The company said it is committed to working with the SEC and other regulators to make its products compliant with the highest standards of investor protection and market integrity.
Boogle #009 sells for 2500 SOL amid ETH NFTs seeing over $24.9M in trading volume in two weeks
Boogle #009 is one of the most sought-after NFTs in the Solana ecosystem. It features a cute and colorful creature with a unique combination of traits, such as a rainbow horn, a starry eye, and a fluffy tail.
Boogle #009 is part of the Boogle collection, which consists of 10,000 randomly generated and programmatically minted NFTs on the Solana blockchain. Each Boogle has its own personality and rarity, and they can be traded, collected, or used in various metaverse applications.
Boogle #009 is especially rare because it belongs to the Mythic tier, which has only 100 NFTs in total. According to the official Boogle website, the Mythic tier has a 1% chance of being minted, and it includes some of the most exotic and desirable traits. Boogle #009 is also one of the few NFTs that has a rainbow horn, which is considered to be the most valuable trait in the Boogle collection.
The current market value of Boogle #009 is estimated at 2500 SOL, which is equivalent to about $500,000 USD at the time of writing. This makes it one of the most expensive NFTs on Solana, and one of the top 100 NFTs across all blockchains.
The last sale of Boogle #009 occurred on December 15th, 2023, when an anonymous buyer purchased it from the original minter for 2000 SOL. Since then, the price of Boogle #009 has increased by 25%, reflecting the high demand and limited supply of this NFT.
If you are interested in owning Boogle #009, you will have to wait for the owner to list it for sale on one of the Solana NFT marketplaces, such as Solanart, Digital Eyes, or Magic Eden. However, be prepared to pay a premium price for this rare and adorable NFT. Boogle #009 is not only a valuable digital asset, but also a piece of art and history in the Solana NFT space.
Ethereum-based non-fungible tokens (NFTs) have been breaking new records in the last two weeks of December 2023, according to data from DappRadar. The total volume of NFT trading on the Ethereum network reached $24.9 million, surpassing the previous record of $19.4 million set in November 2023. This indicates a growing demand and interest in digital collectibles, art, and gaming assets that are powered by smart contracts and verified by blockchain technology.
Some of the most popular NFT projects that contributed to this impressive volume include CryptoPunks, Art Blocks, Bored Ape Yacht Club, and Cool Cats. CryptoPunks, one of the oldest and most iconic NFT collections, saw a resurgence of activity after a rare alien punk was sold for a whopping $11.8 million on December 23rd, making it the second most expensive NFT ever sold.
Art Blocks, a platform that allows users to create and collect generative art pieces, also witnessed a surge of sales, especially for its curated series that feature works by renowned artists such as Fidenza, Ringers, and Chromie Squiggle.
Bored Ape Yacht Club and Cool Cats, two of the most popular NFT avatar projects, continued to attract new buyers and fans with their unique and expressive designs, as well as their active and supportive communities.
The rise of NFTs on Ethereum is not only a testament to the creativity and innovation of the NFT space, but also a reflection of the strength and resilience of the Ethereum network. Despite the high gas fees and network congestion that often plague Ethereum users, many NFT enthusiasts are willing to pay a premium to access the largest and most diverse NFT ecosystem in the world.
Moreover, with the ongoing development and deployment of Ethereum 2.0, which aims to improve the scalability, security, and sustainability of the network, the future of NFTs on Ethereum looks even brighter and more promising.