According to the latest edition of Arcane Research, the entire market appears to be stabilizing even though there’s still some uncertainty left.

Going forward, 2023 will be shaped by low volatility and stagnant market trend. But the Gemini-DCG fiasco poses a significant threat to the market.

“Currently, GBTC trade at a 45% discount to its NAV, while ETHE trades at a 59% discount to its NAV. GBTC holds 3.3% of the circulating BTC supply and 2.5% of the ETH supply. A Reg M would cause a massive arbitrage strategy of selling crypto spot versus buying Grayscale Trust shares.”

If this scenario transpires, the downside will be inevitable. In the long term, however, the market would finally get eliminate “the major burden that the Grayscale widow maker trade has generated” and is shaping up to become a “potential market bottom event.”