As follows FTX Bankruptcy Saga Moving on, advisors to the collapsed cryptocurrency exchange received court approval to sell digital trust assets from Grayscale and Bitwise. These assets are currently valued at approximately $873 million.
FTX holds a total of more than 32 million shares divided among five Grayscale trust companies. Bitcoin Trust (GBTC), Ethereum Trust (ETHE); Ethereum Classic Trust (ETCG); Litecoin Trust (LTCN), Digital Large Cap Trust (GDLC), and Bitwise 10 Crypto Index Fund.
The bankruptcy court filing allows FTX’s bankruptcy advisors to sell shares of the trust to recover funds to repay creditors, including exchange customers. As of the October 25 filing, the shares had a total value of $744 million. Recent increase in asset value good night bitcoin And Ethereum.
Grayscale’s publicly traded trusts allow investors to gain exposure to cryptocurrencies without actually owning or storing the underlying assets. The company holds a significant amount of underlying crypto assets for each trust. For example, Grayscale holds nearly $24 billion worth of Bitcoin for the Grayscale Bitcoin Trust.
The prices of GBTC and other trusts fluctuate like the prices of their representative assets, but historically this has not been consistent. GBTC has been trading at a premium to the actual Bitcoin price for several years, but has fallen to a discount in early 2021. The discount rate has expanded significantly, peaking at 49% at the end of 2022, but recently As of today, it is just over 8%..
Grayscale is one of many companies There have been attempts to operate a Bitcoin spot exchange-traded fund (ETF) in the United States, but the Securities and Exchange Commission (SEC) has not yet approved such an application. The company plans to convert the Bitcoin Trust into a proper Bitcoin ETF.
Last August, the company Won a court decision against the SEC., which has been delaying its decision to review Grayscale’s Bitcoin ETF application. The court ruled that although the SEC has not yet made a decision on the Bitcoin ETF, the agency must review and consider the application. According to the SEC memo: The agency recently met with Grayscale. Principal to discuss.
Edited by Ryan Ozawa.