According to CoinDesk, citing “private data” and unnamed sources, cryptocurrency exchange FTX has invested nearly $1 billion worth of shares in Grayscale’s GTBC fund since shares of Grayscale’s GTBC fund recently began trading as a spot Bitcoin ETF. It is said that GTBC fund shares were sold.
Grayscale’s Spot Bitcoin ETF led competing funds in terms of trading volume, with a significant portion of it outflowing. As of Friday, the Grayscale fund accounted for about 54% of trading volume since the new cryptocurrency-backed ETF began trading earlier this month, according to Yahoo Finance data compiled by The Block.
Bloomberg Intelligence Senior ETF Analyst Eric Balchunas published data Over the weekend, it was revealed that Grayscale’s funds had lost $2.8 billion since trading began.
FTX’s sale of shares of the Grayscale ETF is part of the failed cryptocurrency exchange’s ongoing bankruptcy proceedings, CoinDesk reported. The bankruptcy estate sold all 22 million shares owned by FTX, the report said.
FTX creditors seeking to recover losses
In late November, the Delaware Bankruptcy Court said FTX Trading and its affiliated debtors could begin selling Grayscale stock. FTX owned about 22 million shares of Grayscale’s flagship Bitcoin fund, worth $597 million at the time.
FTX filed for bankruptcy in November 2022. The exchange’s creditors, including individual customers, are hoping to recoup their losses through the sale of assets such as Grayscale stock.
Meanwhile, the price of Bitcoin has fallen from nearly $49,000 when the Bitcoin spot ETF began trading to less than $41,000 as of 10:58 a.m. ET, according to The Block’s price page.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal and has covered companies including Disney, Netflix, and Warner Bros. and the creator economy, with a primary focus on technological innovation across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a variety of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.