Qiao Wang — Investor, annotator and head of product at crypto marketplace data business firm Messari — raised major criticism about the way in which the Grayscale Bitcoin Trust, or GBTC, is gear up.

In a June xi tweet, Wang cites Grayscale's official website, according to which "Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from fourth dimension to time." He suggested that the absenteeism of a redemption mechanism can result in GBTC trading at a discount compared to the cyberspace asset value, or NAV, of the fund'due south avails.

"Yous are simply donating your coin to Grayscale"

Wang explained that when an exchange-traded fund, or ETF, trades at a discount compared to the fund'southward underlying assets, an arbitrageur can buy the contract on an commutation and redeem it for the assets that back it. He said:

"Without the ability to redeem, you are just donating your money to [Grayscale's founder] Barry [Silbert]."

Grayscale is growing at a fast step

Recent news makes it clear that Grayscale'southward cryptocurrency holdings are growing at an astonishing footstep. As Cointelegraph reported at the terminate of May, Grayscale was at the time buying Bitcoin (BTC) i and a one-half times faster than new units were mined since the May xi Bitcoin cake reward halving.

Furthermore, Grayscale'southward director of investor relations Ray Sharif-Askary recently announced that the firm has also been aggressively ownership Ether (ETH).