FTX Can Sell $870 Million of Grayscale, Bitwise Assets, What’s Next?
As per the Delaware bankruptcy court document filed on Wednesday, November 29, crypto exchange FTX is looking to sell shares of its Grayscale and Bitwise investment funds worth a staggering $873 million combined. FTX is reportedly holding shares of five Grayscale Trusts and one Bitwise trust.
FTX Selling Its Trust Assets
The court has broadened the scope of Galaxy, a crypto investment firm, to aid FTX in selling its trust assets, as per a court filing on Tuesday. Earlier this year, FTX had enlisted Galaxy’s assistance in overseeing the extensive digital asset holdings of the estate. The filing notes:
“The debtors are authorized, but not directed, to execute sales of the trust assets, in their reasonable business judgment, in accordance with the following sale procedures”.
FTX’s trust assets, encompassing shares in various Grayscale funds such as Grayscale Bitcoin Trust (GBTC) and a Bitwise crypto index fund, were valued at $744 million as of October 25, according to a court document filed on November 3.
Recent calculations suggest that the trust holdings value, particularly GBTC, may stand at approximately $873 million due to the narrowing of GBTC’s discount to its net asset value amid the recent Bitcoin price rally. This surge, amounting to roughly 17% since October 25, is due to the overall increase in cryptocurrency prices over the past month.
FTX, formerly led by Sam Bankman-Fried, was once among the world’s largest trading platforms but faced bankruptcy in November last year. It also exposed the precarious financial situation of FTX’s sister trading firm, Alameda Research. Global financial security watchdog FSB has recently warned about FTX-like crypto risks in the market.
Selling these assets could further help FTX reopen the exchange aka FTX 2.0. As per the reports, the new administration is likely to restart the exchange sometime in the first quarter of 2024.
FTT Token on Investors’ Radar
Amid recent developments surrounding Binance and its recent $4.3 billion settlement. FTX’s native cryptocurrency FTT has been on investors’ radar. The FTT token made strong gains last week. Also, the recent report suggests that the whale accumulation continues further.
At press time, the FTT token is trading at a price of $4.04. The ten most substantial FTT wallets have amassed tokens valued at $12.8 million.
CoinGecko indicates a shift in the community’s sentiment towards FTX Token, with over 55% expressing optimism about FTT’s future. In the last month, FTT’s price has surged by 235% and successfully breached crucial resistance levels from a technical standpoint. The sustainability of this bullish momentum is uncertain, but current technical and on-chain indicators portray a positive outlook.
The post FTX Can Sell $870 Million of Grayscale, Bitwise Assets, What’s Next? appeared first on CoinGape.
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Bitwise: Cryptocurrency Will Let Big Tech Compete With Big Banks
FTX Can Sell $870 Million of Grayscale, Bitwise Assets, What’s Next?
As per the Delaware bankruptcy court document filed on Wednesday, November 29, crypto exchange FTX is looking to sell shares of its Grayscale and Bitwise investment funds worth a staggering $873 million combined. FTX is reportedly holding shares of five Grayscale Trusts and one Bitwise trust.
FTX Selling Its Trust Assets
The court has broadened the scope of Galaxy, a crypto investment firm, to aid FTX in selling its trust assets, as per a court filing on Tuesday. Earlier this year, FTX had enlisted Galaxy’s assistance in overseeing the extensive digital asset holdings of the estate. The filing notes:
“The debtors are authorized, but not directed, to execute sales of the trust assets, in their reasonable business judgment, in accordance with the following sale procedures”.
FTX’s trust assets, encompassing shares in various Grayscale funds such as Grayscale Bitcoin Trust (GBTC) and a Bitwise crypto index fund, were valued at $744 million as of October 25, according to a court document filed on November 3.
Recent calculations suggest that the trust holdings value, particularly GBTC, may stand at approximately $873 million due to the narrowing of GBTC’s discount to its net asset value amid the recent Bitcoin price rally. This surge, amounting to roughly 17% since October 25, is due to the overall increase in cryptocurrency prices over the past month.
FTX, formerly led by Sam Bankman-Fried, was once among the world’s largest trading platforms but faced bankruptcy in November last year. It also exposed the precarious financial situation of FTX’s sister trading firm, Alameda Research. Global financial security watchdog FSB has recently warned about FTX-like crypto risks in the market.
Selling these assets could further help FTX reopen the exchange aka FTX 2.0. As per the reports, the new administration is likely to restart the exchange sometime in the first quarter of 2024.
FTT Token on Investors’ Radar
Amid recent developments surrounding Binance and its recent $4.3 billion settlement. FTX’s native cryptocurrency FTT has been on investors’ radar. The FTT token made strong gains last week. Also, the recent report suggests that the whale accumulation continues further.
At press time, the FTT token is trading at a price of $4.04. The ten most substantial FTT wallets have amassed tokens valued at $12.8 million.
CoinGecko indicates a shift in the community’s sentiment towards FTX Token, with over 55% expressing optimism about FTT’s future. In the last month, FTT’s price has surged by 235% and successfully breached crucial resistance levels from a technical standpoint. The sustainability of this bullish momentum is uncertain, but current technical and on-chain indicators portray a positive outlook.
The post FTX Can Sell $870 Million of Grayscale, Bitwise Assets, What’s Next? appeared first on CoinGape.
Read More