Digital Currency Group is heading for bankruptcy ? panic in the markets!

In a big move, Digital Currency Group, a capital markets company is apparently caught up in selling its stakes in one of the world’s largest digital asset trusts. DCG has begun to unload its holdings in several funds in order to pay off creditors of its failed lending arm, Genesis.

Is Digital Currency Group headed for bankruptcy?

According to reports, U.S. securities filings reveal that DCG is selling its holdings in several funds managed by Grayscale. However, the move comes as Digital Currency Group struggles to raise funds to support Genesis.

The sale of DCG is enough to shake investor sentiment toward the crypto-currency market, as the capital markets firm is one of the oldest and largest to pump money into digital assets. However, the prices of the most important crypto have already recorded a massive drop over the past year.

The complication that is building up for DCG may be a wake-up call for its investors who hold big names like Softbank, GIC and CapitalG, the venture capital arm of Alphabet, while Grayscale is a leading digital asset investment firm that is a gateway to earning hundreds of millions of dollars for Digital Currency Group.

Ethereum fund in danger?

It’s important to note that DCG is selling stakes in Grayscale as its stock has fallen significantly over the past two years. According to reports, Digital Currency Group is focusing on the Ethereum fund in this major sale.

The financial group has sold about a quarter of its holdings since January 24 to raise $22 million. The company is reportedly selling shares at $8, while each claimed share is $16. However, DCG said this was part of its ongoing portfolio rebalancing. Digital Currency Group last sold its Ethereum Trust shares in 2021.