According to recent reports, the now-defunct cryptocurrency exchange FTX reportedly sold approximately 75% of Grayscale Bitcoin Trust shares (GBTC) in a matter of days.
The sale is estimated to have generated about $600 million, according to people familiar with the situation.
FTX quickly offloaded millions of GBTC shares.
FTX Real Estate recently sold more than “two-thirds” of its 22.28 million shares, according to a Bloomberg report citing sources familiar with the matter.
“Large capital markets ETFs serve a variety of investment strategies, and we expect GBTC’s diverse shareholder base to continue to deploy strategies that influence inflows and outflows.”
Additionally, GBTC was launched in 2013. It was originally only available on the OTC (over-the-counter) market. This is a decentralized market for stocks that are not listed on a major exchange.
However, according to Grayscale, GBTC owns about 3% or more of all Bitcoin in circulation.
Meanwhile, the US Securities and Exchange Commission (SEC) has approved the conversion of GBTC to Bitcoin ETF. This comes as applications for 11 spot Bitcoin ETFs were approved on January 10th.
Read more: FTX Collapse Explained: How Did Sam Bankman-Fried’s Empire Fall?
FTX Grayscale Bitcoin Trust
However, Grayscale Investments itself recently sold Bitcoin (BTC) after converting its closed-end GBTC into an exchange-traded fund (ETF).
Additionally, the discount rate between GBTC shares and the underlying net asset value of the BTC they hold has been narrowed to 0%. This is important for investors. It also refers to the value per share that would be distributed to investors if the fund sells its assets and pays off all its liabilities.
However, net asset value data has been reduced since the US SEC approved Grayscale’s ETF.
Read more: Who is infamous FTX co-founder Sam Bankman-Fried (SBF)?
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