Grayscale Bitcoin Trust Sale
Following the conversion of Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund, the bankrupt FTX’s assets have now sold approximately $1 billion worth of GBTC shares.
Details of The Sale
FTX, which filed for Chapter 11 Bankruptcy on 11 November 2022, has recently sold 22 million shares of GBTC, which converted into Bitcoin ETFs earlier this month on January 11.
This sell-off by FTX has now effectively reduced its stake to zero.
Before the sale, FTX held 22.3 million GBTC shares valued at $597 million as of October 25, 2023.
Future Implications
FTX’s cryptocurrency holdings extended beyond GBTC, encompassing shares in five Grayscale trusts and nearly 3 million shares in a statutory trust managed by ETF provider Bitwise.
On the other hand, Alameda Research, the sister firm of FTX, has voluntarily dismissed the lawsuit against Grayscale alleging that the latter had charged excessive fees.
Bitcoin Price Movement
Data reveals that contrary to the bullish speculations of Bitcoin expected post-ETF approval, the price of Bitcoin has substantially declined ever since the launch of these ETFs.
In Conclusion
FTX’s strategic move to offload GBTC shares has made the market dynamics more complex. With FTX completing the sale of its substantial GBTC holdings, speculations are arising that the selling pressure on GBTC may ease. The unique event of a bankruptcy estate liquidating holdings could have contributed to the recent outflows.
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