DCG in urgent need of fundraising! Massive amounts of Grayscale products sold at half price, with Ethereum Trust Fund selling the most

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DCG is Selling Grayscale Assets

According to a report by the Financial Times, DCG has begun selling portions of its subsidiary Grayscale's investment products after reviewing relevant securities documents.

The investment products being sold include Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic Trust, and Digital Large Cap Fund. Among these, the Ethereum Trust Fund has seen the most sales, with about a quarter of its shares sold at half price since 1/24, raising $22 million.

Earlier reports indicated that lending platform Genesis declared bankruptcy at the end of January, with debts exceeding $3.5 billion. While DCG stated in the documents that the sales were for "portfolio rebalancing," it inevitably raises suspicions that the sales were made to repay Genesis's debts as a last resort.

According to Ycharts data, the Ethereum Trust Fund has been trading at a discount of around 50% since 1/24. In this context, DCG's decision to sell at half price reflects the urgency to raise funds.

Grayscale Earns Hundreds of Millions in Management Fees Annually

In addition to selling a large amount of Grayscale's investment products, the documents also reveal that Grayscale earned $303 million in management fees through the Bitcoin Trust Fund in the first nine months of 2022, while the Ethereum Trust Fund also generated $209 million in revenue for Grayscale.

From this, it can be inferred that with such a lucrative source of income, DCG may not easily give up and would rather sell assets at a discount than end Grayscale's trust fund business, allowing the shares to be redeemed at face value.