Genesis is no longer acting as an authorized participant for Grayscale's crypto trust products
Genesis will no longer be responsible for issuing new shares of its crypto fund products as Grayscale will bring the function in-house, serving as an authorized participant for the products via a new entity, Grayscale Securities, according to a new regulatory filing with the Securities and Exchange Commission.
Grayscale Securities, a registered broker-dealer with the SEC and FINRA member, will serve as the only authorized participant. Genesis will continue to serve as a liquidity provider, sourcing cryptocurrency holdings for the trusts. The transition — which is effective October 3 — comes amid a flurry of exits from Genesis in the wake of the meltdown of crypto hedge fund Three Arrows Capital, against which Genesis filed a $1.3 billion claim. The broker said in August that it cut 20% of its workforce.
Source
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