The global digital asset marketplace has been severely affected by the collapse of FTX, a cryptocurrency trading platform. This crisis has had a major impact on several crypto-exchanges and lending platforms. This wildfire has reached the largest cryptocurrency fund in the world.

Grayscale Bitcoin trust trading with negative premium

data shows that the negative premium for Grayscale Bitcoin Trust Fund Fund (GBTC), grew to a staggering 42.7%. The negative premium for Ethereum Fund fell to 40.12%. Both trust funds are at an all-time low.

According to reports, GBTC, which holds 3.5% of the world’s Bitcoin value, has seen its value drop as investors hesitate to invest in the market due to the recent FTX collapse. Grayscale however stated that it was not affected at all by the collapses of Genesis and DCG’s subsidiary.

The drop in premiums suggests that trust investors have lost 83% since November, when the Bitcoin price reached its All-time high (ATH). The Bitcoin price has dropped by a staggering 65% year-to-date (YTD).

At press time, Bitcoin trades at an average price $16,748, BTC’s market capitalization now stands at $321.7 million.

Are these warnings for crypto investors?

Experts believe that investors’ confidence has plummeted in cryptocurrency since the collapse of FTX. Due to recent events, the global digital asset market has fallen below the critical $1 trillion mark.

Grayscale investors were panicked when Genesis, a crypto lending platform, suspended its services on Wednesday. According to reports, Genesis originated more than $50 billion in loans last year. The collapse of Three Arrows Capital caused a serious blow to its lending arm.

Digital Currency Group’s subsidiaries are Grayscale and Genesis. Genesis was authorized to participate in GBTC. It was responsible for issuing Grayscale securities new shares up to last month.