Bitcoin’s biggest trade goes from hero to zero

High risk: A representation of bitcoin is seen in an illustration. US regulators have repeatedly prohibited the launch of spot-backed bitcoin ETFs, citing the token’s volatility and vulnerability to scams. — Reuters

GRAYSCALE Investments’ proposal to buy out certain holders of its flagship bitcoin trust is the money manager’s latest bid to stanch losses in a fund that’s been a linchpin in the dramatic rise and fall of the cryptocurrency universe.

For years, the Grayscale Bitcoin Trust (GBTC) served as the conduit through which billions of dollars flooded into crypto to exploit a seemingly automatic arbitrage trade.