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FTX Heritage sells $1 billion worth of GBTC after approval of Bitcoin ETF

Will FTX’s GBTC selling pressure be resolved?

The virtual currency Bitcoin fell below the $40,000 level early on the 23rd. The continued decline since approval of the Bitcoin ETF appears to have canceled out the gains from December last year. Major altcoins have fallen even more sharply, with stocks such as Solana (SOL) dropping about 10% in the past 24 hours.

Source: Binance

Since the 10-stock Bitcoin ETF was listed about two weeks ago, GBTC, a Bitcoin ETF provided by Grayscale, has sold more than $2.2 billion worth of shares as of last Friday, of which about $1 billion worth has been sold. It seems that it was due to the bankrupt FTX. This was revealed in a report by cryptocurrency media CoinDesk citing private data.

According to a court filing last November, FTX held 22 million shares of GBTC. At the time, the market value was approximately $600 million, but due to expectations for ETF approval and subsequent approval, Bitcoin rose, and GBTC’s price rose approximately 1.6 times.

GBTC leads rival ETFs such as BlackRock and Fidelity in trading volume, but much of that volume is accounted for by outflows and redemptions.

It has been pointed out that GBTC’s high fees (1.5%) are the cause of the outflows, but last week Grayscale CEO Michael Sonnenshein said, “Investors (particularly institutional investors) are concerned about liquidity, performance, and the actual issuer. “We’re focusing on who we are. Grayscale is a cryptocurrency specialist,” he argued on the merits.

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FTX Heritage sells $1 billion worth of GBTC after approval of Bitcoin ETF appeared first on Our Bitcoin News.

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 1/23/2024

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