Barry Silbert, the founder of Grayscale, which is part of the Digital Currency Group (DCG), has resigned from his position as a board member of Grayscale.
Grayscale is the sponsor of the Grayscale Bitcoin Trust (OTC:GBTC), an OTC markets traded vehicle that allows investors to participate in the spot Bitcoin market. Grayscale has been seeking approval from the Securities and Exchange Commission (SEC) to migrate the trust to an Exchange Traded Fund (ETF) – a move that has been stymied by the Commission. Silbert’s DCG also controlled Genesis, an institutional digital asset platform, which is now in bankruptcy after a painful period of public turmoil.
A recent X by Ram Ahluwalia, a frequent commenter on both traditional and crypto markets, has expressed his opinion that Silbert’s exit from Grayscale is a “Christmas Gift” designed to improve the odds of ETF approval. Ahluwalia slams DCG claiming that it looks like a “modern Enron” and is under investigation by the SEC.
“Today, there are only allegations against DCG which have not been resolved in a court of law. Even though the evidence submitted in the complaint looks damning. (It sure looks like DCG is a modern Enron) – these are still allegations. The SEC also has their own investigation against DCG which is led by Barry Silbert.”
So will Grayscale get its way and see a spot Bitcoin ETF trade on an exchange? The exit of Silbert from the Board cannot hurt and should remove an element of distraction for the company. It appears that momentum is on the side of sponsors seeking approval for a Bitcoin ETF and Grayscale has a solid operational record which helps.
While there is no forgone conclusion as the Commission under Chair Gary Gensler has been dodging a decision for some time now. This even while the court’s have pushed back on his justications, but 2024 is looking like the year when the SEC must capitulate.
Barry’s resignation was @Sonnenshein‘s X-Mas gift.
What to make of @bsilbert resigning from Grayscale?
Grayscale has had 9 meetings with the SEC per the table below (h/t @JSeyff)
Today, there are only allegations against DCG which have not been resolved in a court of law.… https://t.co/d7tZFFAOoU pic.twitter.com/NjjdWq0F3a
— Ram Ahluwalia CFA, Lumida (@ramahluwalia) December 26, 2023