In a few weeks, the failed cryptocurrency exchange FTX has sold nearly 75% of its 22.28 million GBTC shares: what are the reasons behind the sale?
In just a few days, the now-defunct cryptocurrency exchange FTX has sold nearly 75% of its Grayscale Bitcoin Trust (GBTC) shares, totaling 22.28 million. It is estimated that the sale may have generated nearly $600 million in proceeds for the exchange.
The situation of FTX
After filing for bankruptcy under Chapter 11 in the United States, in September 2023, a U.S. court approved a liquidation plan for over $3.6 billion in digital assets owned by FTX. This move is necessary to repay victims of the exchange collapse that occurred in November 2022.
The sale of GBTC shares is part of the liquidation plan for the exchange established by the U.S. court.
The role of Grayscale in Bitcoin
Launched in 2013, Grayscale’s GBTC fund has been in the market for almost a decade. It was initially available only in over-the-counter (OTC) markets, decentralized markets for the exchange of shares not listed on major exchanges.
On January 10th, the United States Securities and Exchange Commission approved the conversion of GBTC into a spot Bitcoin ETF.
Grayscale reveals that currently, GBTC holds over 3% of all circulating bitcoin.
