Messari Founder Ryan Selkis shared some “obtain aesthetic news” for Grayscale Bitcoin Belief (GBTC) shareholders on Monday.

In a series of tweets, Selkis said that Digital Currency Group (DCG) and its subsidiary Genesis can no longer “dump” GBTC within the marketplace on fable of of obvious public market principles.

For the reason that GBTC is no longer an substitute traded fund (ETF) and is registered below Rule 144, its affiliates are discipline to obvious promoting restrictions.

One of them is the eye of proposed sales, the assign an affiliate has to disclose a sale with the SEC if the sale amount exceeds 5,000 shares or a buck amount increased than $50,000. A disclosure treasure this may possibly maybe most likely spook the market, making any sale by DCG or Genesis one that will maybe happen at depressed market costs.

The second rule, described by Selkis as “the increased of the 2,” specifies that a Grayscale affiliate can no longer sell securities in a three-month length that exceeds 1% of the famed shares of the same class being offered, or extra than 1% of GBTC’s weekly trading quantity within the four weeks old to the sale.

“Since max allowable sales below the 1% test would be 3% of daily quantity dumped on the provide aspect of the book, compelled promoting by DCG-Genesis would additional depress costs AND telegraph sales to the market. It’s *mighty* extra most likely DCG-Genesis refinance the exercise of GBTC as collateral,” tweeted Selkis on Monday.

Last week, a myth from the Monetary Times revealed that DCG had bought $722 million shares of GBTC funded by borrowed funds from Genesis. The myth detailed that these shares had been bought in March 2021, when GBTC traded at $40 per share.

Selkis identified that DCG’s board had authorized $1.2 billion share purchases of GBTC, however the hot liquidity concerns imply the rest of $478 million is “most likely on aid indefinitely.”

This in particular holds upright after DCG took possession of Genesis’s 35 million GBTC shares as part of Three Arrows Capital’s liquidated collateral within the second quarter, said Selkis.

“DCG and affiliates now possess 10% of the trust [GBTC] shares, but these are highly illiquid,” he said.