Grayscale Declares 'Business as Usual' Despite Sister Company Genesis Global Capital Suspending Withdrawals

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.Grayscale told investors that they won't be affected by sister company Genesis Global Capital suspending withdrawals in the wake of FTX_Official's collapse. By JamieCrawleyCD

, thanks in part to Ark Investment Management purchasing 315,259 shares in the investment vehicle, its first such purchase since July 2021. But the discount widened on Wednesday with GBTC falling around 7% and bitcoin relatively flat over the last hour."Genesis' balance sheet bad debt would need immediate recapitalization from DCG," Bernstein Research analyst Gautam Chhugani wrote in a note Wednesday.

"It is unclear if DCG would have the free reserves to top up Genesis, given the size of Genesis' balance sheet," Chhugani wrote."And by implication, if DCG would have to unwind its liquid GBTC product, [it] would create challenges for a whole set of market participants intertwined with GBTC as collateral."

Last week, Genesis disclosed that its derivatives unit had about $175 million in locked funds in its FTX trading account. As a result, DCG

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