DCG Dumps ETH Trust Shares Despite Steep Discount: Report

The crypto conglomerate has reportedly sold a quarter of its shares in Grayscale’s Ethereum Trust after Genesis’ bankruptcy

article-image

T. Schneider/Shutterstock.com modified by Blockworks

share

Digital Currency Group (DCG) has reportedly been selling shares of some of Grayscale Investments’ crypto trusts in an effort to raise capital following the bankruptcy filing of Genesis. 

Founded by Barry Silbert, DCG is the parent company of crypto lending firm Genesis, asset manager Grayscale Investments and media company CoinDesk, among others.

A quarter of DCG’s stock in the Grayscale Ethereum Trust (ETHE) has been sold, raising as much as $22 million in several trades since Jan. 24, the Financial Times reported late Monday, citing filings. 

ETHE, which launched in 2017, has $5 billion in assets. The trust was trading at a roughly 54% discount to its net asset value on Monday, according to YCharts.com.

Dave Nadig, a financial futurist at data firm VettaFi, said the trust issuer’s reported sale at such a steep discount highlights the need for a redemption window. Redemptions of shares for ETHE are not currently authorized. 

“It’s not a great look, obviously, but on the other hand, if a corporation needs to raise cash, selling assets is a pretty time-honored way of doing so,” he told Blockworks.  

DCG has also moved to sell a smaller number of shares in Grayscale’s Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund. 

Those four trusts have combined assets under management of roughly $700 million.  

Spokespeople for DCG and Grayscale did not immediately return a request for comment. 

Genesis filed for bankruptcy last month after taking a major hit during last year’s market turmoil. The company on Monday reached an agreement in principle with Gemini and other creditors on a restructuring plan, following a public feud with Gemini’s Cameron Winklevoss. 

DCG’s reported sale of various Grayscale trust shares comes after the Financial Times said last month DCG was looking to sell some of its venture capital holdings, citing people familiar with the matter.

Grayscale’s largest investment product is its Bitcoin Trust (GBTC), which launched in 2013 and has $14.5 billion in assets. 

The cryptoasset manager has sued the SEC in an attempt to convert GBTC to an ETF, a process Grayscale executives said would help close the trust’s discount, which has exceeded 40% in recent months. 

Grayscale CEO Michael Sonnenshein told investors in a December letter the firm would consider a tender offer for GBTC shareholders if its bid to convert the trust to an ETF fails.

There is no concrete timeframe for a resolution to the legal wrangling, and some GBTC shareholders are growing impatient.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

Friday saw dramatic crypto market activity in the hours after President Donald Trump threatened a new flare-up in US-China trade tensions.

article-image

Officials suspect potential insider trading after wagers on Nobel Peace Prize winner surged hours before announcement

by Blockworks /
article-image

The bank will allow bitcoin and ether fund exposure in any account type, marking a post-election shift in Wall Street’s crypto stance

by Blockworks /
article-image

The CFTC-regulated event-trading platform expands into hybrid markets as Wall Street and crypto investors converge

by Blockworks /
article-image

The Bank of Russia will let banks handle cryptocurrencies under tight reserve caps as lawmakers prepare a digital asset bill

by Blockworks /
article-image

Speculation about a DAT company steering Ethereum overlooks its governance: messy and resistant to corporate capture