Following recent ambiguity regarding the Grayscale Bitcoin Trust’s future, its custodian partner Coinbase published a report outlining the assets held on the trust’s behalf, as reported by Cryptoslate.
According to the letter, holdings are kept apart from other funds. On-chain addresses, however, were not disclosed in the document. As of the time of publication, the trust’s Bitcoin was worth about $10 billion. The amount would have been more in line with $43.8 billion at the height of the bull market. Grayscale also has 3,056,833 ETH in the Greyscale Ethereum Trust, which is worth $3.3 billion. Additionally, the Grayscale Digital Large Cap Fund, which seems to be separate from the primary trust, holds smaller amounts of both BTC and ETH, Cryptoslate noted.
Cryptoslate further noted that following a trend observed across centralised exchanges following the demise of FTX, Grayscale recently refused to release proof of reserves. The business justified its choice not to publish on-chain addresses by citing “security concerns”.
As required by law, Grayscale does provide links to SEC filings on its website for off-chain validation. In order to emphasise that each product is separated from the main fund, it also confirmed that each trust is registered as a separate legal entity.
(With insights from Cryptoslate)