FTX Responsible For Nearly $1 Billion Of GBTC Outflows: Report
FTX has been dumping GBTC in recent weeks after its discount to BTC restored to parity.
Defunct crypto exchange FTX may be behind a tsunami of outflows from the Grayscale Bitcoin Trust (GBTC) this month – and by extension, may have caused a significant downturn in Bitcoin (BTC)’s price.
A recent report from CoinDesk suggested that the FTX bankruptcy has sold off close to $1 billion worth of GBTC since the fund transitioned into a Bitcoin spot ETF and was approved by federal regulators.
Is FTX Suppressing Bitcoin?
CoinDesk cited privately reviewed data alongside two people “familiar with the matter,” who said that the estate has dumped 22 million GBTC shares.
A filing from early November showed that FTX held 22.3 million GBTC shares valued at $597 million as of October 25. At today’s price, those same shares would be worth $798 million.
The rise in share value has occurred for two reasons. Firstly, Bitcoin’s price has risen from roughly $34,500 on October 25 to $40,000 today, including a high of $49,000 earlier this month.
Secondly, the approval and subsequent conversion of GBTC into a Bitcoin spot ETF has closed a long prevailing discount between the value of GBTC shares and the fund’s underlying Bitcoin holdings. In early 2023, GBTC was more than 40% discounted against the price of BTC.
With the discount erased, big GBTC holders like FTX are incentivized to realize profits. On the first day that GBTC traded as a spot ETF, the value of FTX’s share ownership ran up to $900 million.
But that doesn’t mean the company sold its stake for that much. According to Bloomberg ETF analyst James Seyffart , FTX’s selloff was less than $1 billion.
Grayscale’s Outflows
Alameda Research – FTX’s sister trading firm – previously sued Grayscale for inflicting exploitative management fees on its funds’ shareholders. After selling their shares, however, the firm dismissed the lawsuit.
The initial fall of both FTX and Alameda marked Bitcoin’s lowest price in over three years at $15,500 in November 2022. Excitement over ETF approvals and Grayscale’s success against federal regulators in court helped propel the asset over the following year.
Since the approvals, however, Grayscale has suffered almost $3 billion of outflows, including $590.4 million on Friday. Their Bitcoin selloff is visible on-chain, with the firm’s blockchain addresses sending thousands of BTC to Coinbase each day.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Stablecoin Legislation Booms Globally, Why Is China Taking the Opposite Approach? An Article to Understand the Real National Strategic Choices
Amid the global surge in stablecoin legislation, China has chosen to firmly curb stablecoins and other virtual currencies, while accelerating the development of the digital yuan to safeguard national security and monetary sovereignty. Summary generated by Mars AI. This summary is produced by the Mars AI model and its accuracy and completeness are still being iteratively improved.

Liquidity migration begins! Japan becomes the Fed's "reservoir," 120 billions in carry trade returns set to ignite the December crypto market
The Federal Reserve has stopped quantitative tightening and may cut interest rates, while the Bank of Japan plans to raise rates, changing the global liquidity landscape and impacting carry trades and asset pricing. Summary generated by Mars AI. This summary is produced by the Mars AI model, and the accuracy and completeness of its content are still under iterative improvement.

Weekly Hot Picks: Bank of Japan Sends Strongest Rate Hike Signal! Is the Copper Market Entering a Supercycle Rehearsal?
The leading candidate for Federal Reserve Chair is being questioned for potentially "accommodative rate cuts." Copper prices have reached a historic high, and a five-hour meeting between the United States and Russia ended without results. Expectations for a Japanese interest rate hike in December have surged, and Moore Threads' stock soared more than fivefold on its first day... What market moves did you miss this week?

Monad Practical Guide: Welcome to a New Architecture and High-Performance Development Ecosystem
This article will introduce some resources to help you better understand Monad and start developing.

