Digital Currency Group’s Barry Silbert steps down as Grayscale chairman: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, ARK Invest’s Cathie Wood discusses the Ark 21shares pending application for a spot bitcoin ETF.

Chapters:
00:00 – CNBC Crypto World, Dec 26, 2023
0:24 – Crypto drops
0:47 – The headlines
3:34 – ARK Invest’s Cathie Wood

For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-cred…

#CNBC
#CNBCTV

Digital Currency Group’s Barry Silbert steps down as Grayscale chairman: CNBC Crypto World

Today digital currency group’s Barry silbert steps down as grayscales chairman and Ark invest CEO Cathy wood provides insight into her firm’s pending application for a spot Bitcoin ETF welcome to cnbc’s crypto world I’m TAA mckel crypto prices in the red to kick off the final week of 2023 as of

Noon Eastern Bitcoin dipped nearly 3% trading around $42,500 that’s according to coin Ma Tri ether fell nearly 2 1.2% Trading above the $2,200 level and salana tanked more than 8 1.2% but remained above $100 after Crossing that Mark over the weekend it’s still also the biggest winner of the year in crypto

Up around 95% okay let’s focus on micro strategy performance this year as we take a look at today’s top crypto stories what was a little known software stock not too long ago has become well known as a proxy for the price of Bitcoin after the company began buying the CTO cryptocurrency in

2020 that bet produced a more than 330% boost for investors in 2023 outpacing almost all us companies valued at $5 billion or more for example micro strategies performance tops Nvidia more than 200% rally and meta’s 190% surch this year since micro strategy started accumulating Bitcoin in mid 2020 The

Firm has amassed more than 174,000 tokens worth more than $7 billion as of late Friday the vast majority of the company’s value now comes from Bitcoin speaking with CNBC last week micro strategy’s executive chairman Michael sailor said he expects the bull market in Bitcoin to continue

In 2024 you can check out the full story over at cnbc.com next Barry silbert is resigning as Grays skilles chairman that’s according to this SEC filing from today which revealed that digital currency group’s Chief Financial Officer will replace silver on January 1st dcg owns crypto asset manager grayscale

According to the filing dcg’s President also stepped down from the board in the filing Grace Gil did not provide a reason for the changes but in a statement shared with us the firm said its investors will benefit from the new leaders respective experience in the financial services and asset management

Industries as the firm prepares for gray scales next chapter I spoke with a person close to the matter who said the changes are happening as the company prepares for the SEC to potentially approve a spot Bitcoin ETF in January Grace scale is of course seeking us approval to convert its Bitcoin trust

Into an ETF when the DC court of appeals ordered the SEC in August to scrap its rejection of grayscale’s attempt to convert its popular gbtc fund into a spot Bitcoin ETF it was widely considered a win for the crypto industry silbert is the founder and CEO of dcg

Which was one of the crypto firms sued in October by New York attorney general Leticia James for allegedly defrauding investors silbert was also charged with allegedly trying to conceal heavy losses and at the time silbert call the allegations baseless all right sticking with the much anticipated decision on those

Pending spot Bitcoin ETF applications for our main story the SEC has delayed several of those applications including those of grayscale Black Rock and the joint proposal from Arc and 21 shares the first deadline to approach is that of Arc 21 shares the SEC must approve or reject that application by January 10th

So I spoke with Ark invest Kathy Wood to see where that application stands and if she’s feeling optimistic we’ll see if spot Bitcoin ETF in the US in the coming weeks there’s been a lot of buildup around this Bitcoin ETF so I want to get

Right into that the SEC is due to give you a decision on your application at ARC for a Bitcoin ETF on January 10th um and like I said it seems like it’s been a lot of back and forth between potential issuers and the SEC but that

It’s been productive I think is the vibe that I’m getting so to the extent that you’re able to say how would you summarize sort of the current state of progress on the Bitcoin ETF front yeah well after being denied a few times without any questioning to uh be

Questioned back and forth this time around has been very encouraging uh and also shows the depth of the secc’s knowledge of the issues and understanding of them so um we’re quite gratified and uh you know hoping hoping I believe the SC set a deadline for final updates to filings of this

Friday um so I I heard encouraged are you optimistic about you know the shape your application is in and that it could get green lit by January 10th yes we’re very encouraged with our our partner uh 21 shares I think we’ve crossed every te dotted every eye uh I we believe to the

Sec’s satisfaction I think the messaging around uh the 29th is look if you’re not going to be ready to go on or around let’s say January 10th then do not submit anything more to us because we have too much to do here uh and again that also is encouraging because it

Feels like a bit of uh that the SEC is setting a deadline for itself so that’s great understanding the confidential nature of these talks can you tell us a little bit about what some of the feedback back has been like is it is it super super technical is it around

Disclosures I I mean these conversations that you’ve been having what and you’ve already said a little bit of this but what does it say to you about the stance of the SEC which as we all know historically has been um not as engaging and shall we say collaborative on

Bitcoin ETF efforts yeah I guess the the biggest controversy and this is in the Press uh but I’ll highlight it because I think for most of it most of us it has been wow are they going to allow in kind uh transactions so you know limiting the

Tax uh impact of transactions or is it going to be primarily in cash and uh I think as has been reported widely uh I think it’s cash uh not in kind at least at the outset here uh and I think there are just a few people within the SEC who

Um are just somewhat concerned that banks will be forced to touch crypto um uh we’re not sure they will be but uh uh we’re talking about something very technical so to answer your question yes very technical uh but that that has been I think the big issue as we head hopefully towards a

Resolution well the bull thesis around the Bitcoin ETF assumes that once an ETF or several of them get approved that’s going to help attract New Capital into the market particularly from institutions and you know those investors that have been really curious and you know have watched crypto but

Have been sitting on the sidelines waiting for a product of this kind a lot of people out there however um you know we’re hearing are skeptical that the market reaction aren’t going to match the current buildup that we’ve been watching like we talked about with the just you know the engagement and the

Feedback um especially as of late as firms like yours continue to be in conversation with the SEC and that what could happen instead is more of a relative value trade out of existing products like gbtc which you’re an investor in um and crypto Futures ETFs into the spot ETFs what do you

Think well I do think there will be repositioning for all kinds of reasons but uh I do also believe that uh the SEC approval will be a green light for institutions who have been holding back now we’ve had an a big anticipatory move here it wouldn’t be surprising if we

Saw a sell on the news that’s a an expression in the market sell you have a lot of anticipation a price moves up uh the event happens and then uh especially fast trading organizations sell on the news but uh beyond that that I think will be just a maybe a very short-term

Phenomenon uh I think that the institutional push into Bitcoin will be quite significant to the price in fact uh in our price expectations going forward the biggest contributor is institutions as they move you know they don’t have to move very much in they can move they there are trillions of dollars

In assets to be allocated if they just move in 0.1% forget about 1% but even 0.1 or 0.2% that will move the needle especially as uh as we know the number of Bitcoin outstanding right now uh is about 19 and a half million and the the further that number the furthest that

Number is going to go is 21 million in so the scarcity value as institutions move in uh will begin to move the price we believe going back to bitcoin investment products it’s been more than a month since Arin 21 shares launched a suite of five actively managed Bitcoin

And eth Futures ETFs I think we spoke that day actually how has it been going is what’s what is the demand like that you’re seeing for these products and um if you could just go a little further on you know what your expectations for their performance are should your spot

Bitcoin ETF get approval yeah um well as with any uh new ETF there it’s it takes a while to educate uh educate investors Asset allocators Advisors uh about these new offerings so slow as it goes but the most important thing that’s happening right now is you know we’re watching the

Plumbing and the plumbing works that’s that’s extremely important you know 21 shares is the largest pure playay ETP crypto provider in the world with roughly two billion dollars in assets so that has been mostly in Europe This is in the US now and so we wanted to make

Sure the plumbing works and it’s working beautifully uh and I do think that uh a spot Bitcoin ETF will stimulate once once institutions and other investors have a tow hold into the space they will want other way they will want ways to diversify and so we wanted to be ready

With those five strategies to help with actively managed diversification strategies some are lower volatility uh some are more Diversified with digital asset equities uh so again we’re trying to be um uh shall I say a go-to for anyone thinking about investing in in digital assets wood also provided her outlook

For Bitcoin ether and salana in 2024 you’ll be able to check out her full interview over at cnbc.com cryptoworld okay that’s all for today but we’ll be back again tomorrow with an in-depth look at regulatory developments in the US for digital assets we look forward to seeing you then