Grayscale, the asset manager running the world’s largest bitcoin fund, said in a statement that it won’t share its proof of reserves with customers. “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,” said a statement Friday. Following the implosion of FTX and its subsequent bankruptcy proceedings exposing that customer funds were missing, multiple crypto exchanges have jumped to release proof-of-reserve audits in order to assuage investor concerns over the safety of their funds. Others, like Binance, say they soon plan to do so. Grayscale wrote in a tweet that it realized that failing to disclose a proof of reserves would be a “disappointment to some,” but added that a “panic sparked by others is not a good enough reason to circumvent complex security arrangements” that have kept its investors’ assets “safe for years.” Grayscale’s flagship fund is the Grayscale Bitcoin Trust, known by its GBTC ticker. Even as bitcoin trades at a multiyear low of around $16,000, GBTC is trading at a 45% discount to the price of its underlying asset.
Full story : Grayscale refuses to share proof of reserves due to ‘security concerns’ as shares trade at a 45% discount to bitcoin.
