{"id":10035,"date":"2024-01-23T11:31:57","date_gmt":"2024-01-23T09:31:57","guid":{"rendered":"https:\/\/forklog.com\/en\/ftx-offloads-908-million-in-gbtc-shares-amid-bankruptcy-proceedings\/"},"modified":"2024-01-23T11:31:57","modified_gmt":"2024-01-23T09:31:57","slug":"ftx-offloads-908-million-in-gbtc-shares-amid-bankruptcy-proceedings","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ftx-offloads-908-million-in-gbtc-shares-amid-bankruptcy-proceedings\/","title":{"rendered":"FTX Offloads $908 Million in GBTC Shares Amid Bankruptcy Proceedings"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>FTX sold $908 million worth of GBTC shares.<\/li>\n<li>Outflows from GBTC have surged to $3.45 billion.<\/li>\n<li>Panic selling has emerged, yet the market remains relatively balanced.<\/li>\n<\/ul>\n<\/div>\n<p>Amid bankruptcy proceedings, FTX has offloaded 22.3 million shares of <span data-descr=\"Grayscale Bitcoin ETF\" class=\"old_tooltip\">GBTC<\/span> valued at approximately $908 million as of January 11. This was reported by <a href=\"https:\/\/www.coindesk.com\/business\/2024\/01\/22\/ftx-sold-about-1b-of-grayscales-bitcoin-etf-explaining-much-of-outflow-sources\/\">CoinDesk<\/a>, citing informed sources.<\/p>\n<p>FTX&#8217;s position in GBTC was valued at $597 million as of October 25, 2023. Like other asset holders, the current management of the platform benefited from neutralizing the discount to <span data-descr=\"net asset value\" class=\"old_tooltip\">NAV<\/span>.<\/p>\n<p>According to CoinDesk, following the <a href=\"https:\/\/u1f987.com\/en\/news\/sec-approves-all-11-spot-bitcoin-etf-applications\">positive decision by the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span><\/a> on ETFs, investors divested from Grayscale&#8217;s digital gold-based exchange-traded fund to the tune of over $2 billion.<\/p>\n<p>The publication suggested that once the liquidation process concludes, selling pressure on Bitcoin should ease.<\/p>\n<h2 class=\"wp-block-heading\">\u201cFierce Game\u201d<\/h2>\n<p>On the evening of January 18, the price of the leading cryptocurrency fell below $42,000. Experts interviewed cited <a href=\"https:\/\/u1f987.com\/en\/news\/experts-discuss-the-adverse-impact-of-etfs-on-bitcoins-price\">profit-taking on GBTC<\/a> from Grayscale as one of the reasons for the negative trend.\u00a0<\/p>\n<p>On January 22, the digital gold prices continued to correct, reaching early December levels\u2014below $40,000.<\/p>\n<p>Since the approval of 11 spot Bitcoin ETF applications in the U.S., including the conversion of the GBTC trust, the price of the leading cryptocurrency has dropped by approximately 13%\u2014from around $46,000 to current levels.\u00a0<\/p>\n<p>According to Greeks.live, options data reflects the presence of a certain number of short-term panic orders in the market. Experts noted the balance of long and short positions, describing the situation as a \u201cfierce game.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin fell below the $40,000 as short-term IVs recovered. Overall VRP(volatility risk premium) has risen, and the Skew curve is skewed towards put options.<br \/>The above option data reflects the existence of a certain number of short-term panic orders in the market, the market\u2026 <a href=\"https:\/\/t.co\/D5wnuhSWz2\">pic.twitter.com\/D5wnuhSWz2<\/a><\/p>\n<p>\u2014 Greeks.live (@GreeksLive) <a href=\"https:\/\/twitter.com\/GreeksLive\/status\/1749611289964667236?ref_src=twsrc%5Etfw\">January 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Analyst ali_charts urged a measured approach to current events, hinting at the medium-term positive impact of the Bitcoin ETF launch.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Excluding <a href=\"https:\/\/twitter.com\/Grayscale?ref_src=twsrc%5Etfw\">@Grayscale<\/a>, all <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> ETF issuers have collectively acquired over 86,320 <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a> at an average price of $42,000 \u2014 totaling a massive $3.63 billion investment. <\/p>\n<p>Do you think these seasoned institutions really bought at the top? This level of institutional investment\u2026 <a href=\"https:\/\/t.co\/kwB2BIPZ8e\">pic.twitter.com\/kwB2BIPZ8e<\/a><\/p>\n<p>\u2014 Ali (@ali_charts) <a href=\"https:\/\/twitter.com\/ali_charts\/status\/1749536675519185119?ref_src=twsrc%5Etfw\">January 22, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cExcluding Grayscale, all ETF issuers collectively acquired over 86,320 BTC at an average price of $42,000, totaling $3.63 billion. Do you think institutions really bought at the top? This level of institutional investment suggests a strategic, long-term perspective, not peak buying,\u201d<\/em> he explained.<\/p>\n<\/blockquote>\n<p>According to the specialist&#8217;s calculations, Bitcoin whales have sold 70,000 BTC (~$3 billion) over the past two weeks.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> whales have sold around 70,000 <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a> over the past two weeks, worth around $3 billion! <a href=\"https:\/\/t.co\/1yaeIrmkRc\">pic.twitter.com\/1yaeIrmkRc<\/a><\/p>\n<p>\u2014 Ali (@ali_charts) <a href=\"https:\/\/twitter.com\/ali_charts\/status\/1749714711447224419?ref_src=twsrc%5Etfw\">January 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Lookonchain, some of the funds from GBTC sales are being redirected to competing ETFs with <a href=\"https:\/\/u1f987.com\/en\/news\/grayscales-proposed-bitcoin-etf-management-fee-surprises-analysts\">lower fees<\/a>. For instance, BlackRock&#8217;s product, iShares Bitcoin Trust, received 4,808 BTC (~$194.4 million) from Coinbase Prime and currently holds 33,431 BTC (~$1.33 billion).<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">BlackRock\u2019s spot Bitcoin ETF, iShares Bitcoin Trust, received 4,808 BTC (approximately $194.4 million) from Coinbase Prime and currently holds 33,431 BTC (approximately $1.33 billion), according to Lookonchain. <a href=\"https:\/\/t.co\/chB1iRFkjo\">https:\/\/t.co\/chB1iRFkjo<\/a><\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1749619114614882801?ref_src=twsrc%5Etfw\">January 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Pressure on GBTC remains. Bloomberg analyst James Seyffart lamented that outflows from the instrument have accelerated.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Woof. BAD day for <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> ETFs overall in the Cointucky Derby. <a href=\"https:\/\/twitter.com\/search?q=%24GBTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$GBTC<\/a> saw over $640 million flow out today. Outflows aren&#8217;t slowing \u2014 they&#8217;re picking up. This is the largest outflow yet for GBTC. Total out so far is $3.45 Billion. (Don&#8217;t have BlackRock data yet) <a href=\"https:\/\/t.co\/jNOyiTADVq\">pic.twitter.com\/jNOyiTADVq<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1749634659145630055?ref_src=twsrc%5Etfw\">January 23, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cBad day. Over $640 million was withdrawn today. Outflows aren&#8217;t slowing, they&#8217;re increasing. This is the largest for GBTC [since ETF approval]. The total amount so far is $3.45 billion,\u201d<\/em> he calculated.<\/p>\n<\/blockquote>\n<p>Galaxy Digital CEO Mike Novogratz stated that most investors liquidating positions in GBTC will redirect funds to similar instruments, neutralizing the current weakness of the leading cryptocurrency.<\/p>\n<p>Earlier, Grayscale CEO Michael Sonnenshein <a href=\"https:\/\/u1f987.com\/en\/news\/grayscale-ceo-predicts-failure-for-most-bitcoin-etfs\">predicted<\/a> the collapse of most products. In his view, only \u201ctwo or three exchange-traded funds might achieve some critical mass.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTX sold $908 million worth of GBTC shares. Outflows from GBTC have surged to $3.45 billion. Panic selling has emerged, yet the market remains relatively balanced. Amid bankruptcy proceedings, FTX has offloaded 22.3 million shares of GBTC valued at approximately $908 million as of January 11. This was reported by CoinDesk, citing informed sources. FTX&#8217;s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,569,1236,1214,943,1150,1138],"class_list":["post-10035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-etf","tag-ftx","tag-grayscale-bitcoin-trust","tag-grayscale-investments","tag-news-plus","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=10035"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/10034"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=10035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=10035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=10035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}