#FTXBankruptcy #GrayscaleBitcoinFund #BitcoinETF #CryptoTrading #BitcoinPrice #CryptocurrencyOutflows #CryptoAssets #BitcoinInvestment
The FTX bankruptcy estate has been directly associated with a significant proportion of outflows from Grayscale’s Bitcoin fund since it transitioned into a spot Bitcoin ETF. As per private data, FTX astonishingly executed a sale of 22 million shares from the Bitcoin fund, which are approximately worth an astoundingly high $900 million. This move was a result of the fallen crypto giant eradicating its own holdings in the fund after selling the considerable number of shares which represent a significant part of the bigger wave of outflows that are worth around $2 billion since the inception of trading ETFs.
The trading in spot Bitcoin ETFs began on January 11 after the U.S Securities and Exchange Commission finally permitted them following numerous denials and delay periods. However, Grayscale’s fund had been around for over ten years and was structured as a closed-end fund but by the time the SEC gave the approval for its conversion into an ETF, the fund had accumulated assets estimated to be worth nearly $30 billion. Despite this considerable landmark, Grayscale’s fund saw billions of dollars being pulled out – FTX accounting for a large part of it. Notably, the approval of ETFs by the SEC stirred the value of Bitcoin, contrary to the expectation that they would increase. The prevalent belief that regular investors would find it easier to invest in Bitcoin through spot Bitcoin ETFs further contributed to this surprising outcome. The situation could stabilize now that FTX ended the selling of its substantial holdings.
Image: https://weeklyfinancenews.online/wp-content/uploads/2024/01/Screen-Shot-2024-01-02-at-12.25.49.png
Comments are closed.