BTC
by BSC News
January 22, 2024
This move follows the recent conversion of GBTC into an exchange-traded fund (ETF) and aligns with the broader withdrawal trend, amounting to over $2 billion since the ETF conversion.
FTX's bankruptcy estate has reportedly offloaded a staggering 22 million shares, equivalent to nearly $1 billion, from the Grayscale Bitcoin Trust (GBTC).
Notably, investors have withdrawn over $2 billion from GBTC since its ETF conversion earlier this month. As per reports from CoinDesk, the lion's share of this withdrawal, approximately $1 billion, stems from FTX's bankruptcy estate selling 22 million GBTC shares, as per private data reviewed by CoinDesk and insights from informed sources.
The timing of the GBTC exodus coincides with the approval of Bitcoin ETFs, a moment anticipated with great optimism. However, contrary to expectations, Bitcoin's price has experienced a notable decline.
FTX, like many major crypto trading entities, took advantage of price disparities between Grayscale trust shares and the net asset value of underlying bitcoin. FTX initially held 22.3 million GBTC shares valued at $597 million, and the value rose to around $900 million with the launch of Grayscale's bitcoin ETF on January 11.
FTX's bankruptcy estate, approved in late November to sell over 22 million GBTC units, aims to recover around $873 million in assets. These assets included FTX's stakes in Grayscale Investments and Bitwise, valued at $807 million (according to previous valuation) and $66 million, respectively.
The proceeds from this liquidation will be directed towards repaying creditors affected by FTX's collapse in 2022.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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