The world's largest Bitcoin fund, the Grayscale Bitcoin Trust GBTC surged on Monday, outperforming all other risk assets including Bitcoin BTC/USD, as a weekend deadline to resolve a key issue with crypto lender Gemini passed by without much action.
What Happened: According to data from Benzinga Pro, the $10.7 billion fund experienced its largest one-day jump since February 2022 — a 12% surge.
The rally occurred after a Sunday deadline set by Gemini Trust co-founder Cameron Winklevoss for Digital Currency Group founder Barry Silbert to publicly commit to working together in addressing a $900 million hole created by DCG-owned crypto lender Genesis halting redemptions in November, as per Bloomberg.
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Earlier, Winklevoss said DCG parent Genesis Global Capital owes Gemini’s clients $900 million, and despite waiting six weeks for a repayment agreement, he claimed Gemini is yet to receive any response on the matter.
“How does DCG owe Genesis $1.675 billion if it didn’t borrow the money? Oh right, that promissory note,” Winklevoss’ said. “Will you (Silbert), or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?” he tweeted.
Meanwhile, Winklevoss did not declare what the result would be in case of no agreement. This continued to alarm individuals that Genesis might declare bankruptcy, similar to what it had announced when attempting to acquire extra funds in November.
Price Action: BTC is trading at $17,191 down 0.17% in the last 24 hours, according to Benzinga Pro.
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