Following the approval of spot Bitcoin exchange-traded funds, the
crypto market witnessed a surprising downturn after FTX unloaded a staggering
$1 billion worth of Grayscale Bitcoin Trust (GBTC) shares.
This unprecedented sell-off, primarily attributed to
FTX’s bankruptcy estate, now raises questions about the broader implications
for the crypto landscape. According to a report by Coindesk, FTX is a significant
contributor to the outflows amounting to more than $2 billion reported by the
Grayscale Bitcoin Trust (GBTC).
CoinDesk’s private data review unveiled that FTX
disposed of 22 million shares, accounting for nearly $1 billion of the overall
outflow. Despite high expectations surrounding the approval of Bitcoin ETFs,
the market witnessed a decline in Bitcoin’s price.
FTX leveraged the price difference between GBTC and
the value of the underlying Bitcoins. Holding 22.3 million GBTC valued at $597
million in October 2023, FTX’s move to liquidate its stake at $900 million
coincided with Grayscale’s Bitcoin ETF launch on January 11.
The aftermath saw a drop in Bitcoin’s value,
prompting a reevaluation of the impact of the approval of the ETFs.
Following the approval of spot Bitcoin exchange-traded funds, the
crypto market witnessed a surprising downturn after FTX unloaded a staggering
$1 billion worth of Grayscale Bitcoin Trust (GBTC) shares.
This unprecedented sell-off, primarily attributed to
FTX’s bankruptcy estate, now raises questions about the broader implications
for the crypto landscape. According to a report by Coindesk, FTX is a significant
contributor to the outflows amounting to more than $2 billion reported by the
Grayscale Bitcoin Trust (GBTC).
CoinDesk’s private data review unveiled that FTX
disposed of 22 million shares, accounting for nearly $1 billion of the overall
outflow. Despite high expectations surrounding the approval of Bitcoin ETFs,
the market witnessed a decline in Bitcoin’s price.
FTX leveraged the price difference between GBTC and
the value of the underlying Bitcoins. Holding 22.3 million GBTC valued at $597
million in October 2023, FTX’s move to liquidate its stake at $900 million
coincided with Grayscale’s Bitcoin ETF launch on January 11.
The aftermath saw a drop in Bitcoin’s value,
prompting a reevaluation of the impact of the approval of the ETFs.
