FTX Sells Stake in Grayscale Bitcoin Trust (GBTC)
FTX, a defunct crypto exchange, has recently sold its stake in Grayscale Bitcoin Trust (GBTC). Reports suggest that FTX has liquidated around 22 million shares, worth nearly $1 billion, effectively reducing its ownership of GBTC to zero.
This sale comes after GBTC’s transformation into a spot exchange-traded fund (ETF), which was a significant move for both Grayscale and the crypto industry as a whole.
Grayscale’s conversion of its Bitcoin trust into an ETF was the largest in the world, with assets exceeding $28.6 billion. However, since the conversion, GBTC has experienced outflows of over $2 billion, indicating some challenges in the ETF market.
Implications for Bitcoin and the ETF Landscape
FTX divesting from GBTC coincides with a downturn in the Bitcoin market. With the approval of several spot Bitcoin ETFs in the US, including BlackRock’s iShares Bitcoin Trust and ARK 21Shares Bitcoin ETF, BTC’s value has declined by almost 10% in the past two weeks alone.
Bitcoin is currently struggling to maintain a price above $41,000. However, Alistair Milne, a notable investor, suggests that with FTX’s sell-off concluded, the downward pressure on BTC may ease, potentially leading to more stable or positive net inflows.
FTX’s Legal Woes: The Bankman Family’s Battle
In another development related to FTX, the legal battle involving SBF (Sam Bankman Fried), the founder of the defunct exchange, and his family continues to unfold.
SBF’s parents have filed a motion to dismiss the adversary complaint against them from FTX’s debtors. The complaint, filed last year, accuses SBF’s parents of breaches of fiduciary duties and fraudulent transfers.
The defense put forth by SBF’s parents challenges the existence of a fiduciary relationship between Mr. Bankman and the debtor entities, arguing against the validity of the breach of duty claims. They also dispute allegations of aiding and abetting breach of fiduciary duty and fraudulent transfers due to insufficient evidence.
Hot Take: FTX Sells Stake in GBTC, Bitcoin Market Faces Challenges
FTX has sold its stake in Grayscale Bitcoin Trust (GBTC), reducing its ownership to zero. This comes as GBTC converted into a spot ETF, which has faced challenges with outflows exceeding $2 billion since the conversion.
The sale coincides with a decline in the Bitcoin market following the approval of other spot Bitcoin ETFs in the US. However, with FTX’s sell-off completed, there may be a possibility of more stable or positive net inflows for BTC.
In other news, FTX’s founder, SBF, is involved in a legal battle with his family. His parents have filed a motion to dismiss claims of breaches of fiduciary duties and fraudulent transfers against them.
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