Mark Yusko, a well-known hedge fund manager, gave his opinion on whether the fall of FTX will speed up or slow down the crypto bear market. In a recent interview, Yusko talked about GBTC and Tether, which are two of the most important parts of the crypto industry.
When one of the biggest cryptocurrency exchanges went down in a terrible way, it sent shock waves through the crypto industry. The collapse of FTX had a direct effect on crypto users, investors, and companies that work with crypto, especially after the spread of the problem got worse.
As they try to keep investor trust, crypto exchanges are now being pushed to be more accountable and open. Aside from that, the failure hurt investors’ faith in a big way.
At the same time, the industry was hurt by the growing number of negative feelings. Retailers’ confidence has taken a big hit, and many customers on all centralized exchanges have started putting their money in “cold storage.”
These are just a few reasons why the bear market might last longer than expected. In the middle of all the chaos, well-known analysts and business leaders have told their stories.
Mark Yusko was on the Altcoin Daily podcast. He is the CEO and CIO of Morgan Creek Capital Management. Here, the partner and founder of the asset management company talks about two things he thinks could be very bad for crypto.
The fall of FTX started the bear market, which could go on longer than expected. Yusko says that Sam Bankman-Fried (SBF) is the bad guy at the center of this “big old storm” that he calls FTX. Yusko said, “Bad people do bad things and hate the players and not the game.”
The FTX incident and the pressure from Genesis Capital, which is like a bitcoin trust manager like Grayscale, could do a lot of damage to the market.
First, Yusko was worried about the Grayscale Bitcoin Trust possibly going out of business (GBTC). “If GBTC has to go out of business, it would be bad in the short term. Because of the FTX and Genesis, they are short a billion dollars, and Barry (Silbert) is desperately trying to raise money. But if he has to close the discount and sell the trust, that could be bad.”
The Grayscale Bitcoin Trust is the biggest Bitcoin fund that lets investors get exposure to Bitcoin without having to buy BTC themselves. The CEO of Grayscale’s parent company, DCG, Barry Silbert, said in a CNBC report that the company has $2 billion in debt because FTX failed.
YCharts data shows that at the time of press, the Bitcoin-tracking investment vehicle was trading at a discount of 42.37%. Recently, premiums dropped to a record low just as rumors about FTX going bankrupt started to spread.