FTX's Sale of Grayscale Bitcoin Spot ETF Shares Approaches $1 Billion

FTX Sells $1 Billion in Grayscale Bitcoin ETF Shares

FTX, the bankrupt cryptocurrency exchange, has sold approximately $1 billion worth of shares in Grayscale’s Bitcoin spot fund since it became a spot ETF. The Grayscale Bitcoin spot ETF has seen significant outflows, totaling $2.8 billion. FTX’s sales of Grayscale’s ETF shares are part of the exchange’s bankruptcy proceedings.

FTX Sets Record Sales for Grayscale Bitcoin ETF Spot Shares

FTX has liquidated nearly $1 billion in shares of Grayscale’s GTBC fund since it became a spot ETF. The data comes from CoinDesk, which cited private data and anonymous sources. The Grayscale Bitcoin spot ETF has outperformed other funds in terms of trading volume due to significant outflows.

The Grayscale fund currently represents about 54% of the trading volume since the launch of cryptocurrency-based ETFs. Senior ETF analyst Eric Balchunas revealed that the fund has experienced a loss of $2.8 billion since trading began.

Alameda Research Drops Lawsuit Against Grayscale

Alameda Research, the failed cryptocurrency trading arm of bankrupt FTX, has dropped its lawsuit against Grayscale Investments. The lawsuit accused Grayscale of enriching themselves at the expense of shareholders. However, with the approval and transformation of GBTC into a spot ETF, investors can now redeem their shares.

After GBTC started trading as an ETF on January 11, 2024, Grayscale experienced significant outflows. The company recently sent over 15,000 BTC worth over $623 million to Coinbase Prime, and it is speculated that one of the sellers could be FTX.

Hot Take: FTX’s Sales Impact on Grayscale Bitcoin ETF Shares

The recent sale of Grayscale Bitcoin ETF shares by FTX has had a significant impact on the fund’s trading volume and outflows. FTX, which is currently undergoing bankruptcy proceedings, has sold approximately $1 billion worth of shares since the fund became a spot ETF.

These sales have contributed to the fund’s overall loss of $2.8 billion since trading began. Additionally, Alameda Research has dropped its lawsuit against Grayscale, further shaping the landscape of the cryptocurrency market.