Bitcoin price has fallen since Bitcoin ETFs were approved. During this period, FTX sold approximately $1 billion from Grayscale’s Bitcoin ETF. Meanwhile, Grayscale continues to offload BTC to Coinbase. Alameda Research withdrew the lawsuit it filed against Grayscale. Now the details…
Bankrupt crypto exchange FTX divests GBTC shares
cryptokoin.comAs you follow from, the SEC has finally approved the spot Bitcoin ETF after years of delays. Following this, a number of spot BTC ETFs began trading on January 11. But the Grayscale fund had already existed for a decade. However, it was structured as a less attractive closed-end fund. By the time the SEC blessed the newly created 10 BTC ETF and approved its conversion into an ETF, it had amassed close to $30 billion in assets.
There has been significant inflow into new funds issued by companies such as BlackRock and Fidelity. However, billions of dollars worth of Bitcoin emerged from GBTC. Investors have sold more than $2 billion of Grayscale Bitcoin Trust (GBTC) since it was converted into an exchange-traded fund earlier this month. According to sources, a big part of this exodus was FTX’s bankruptcy estate divestment of 22 million shares.
BTC price has fallen since the approval of the ETFs. However, people had high hopes before the SEC announced its decision. Bitcoin ETFs have been touted as a much easier way for regular people to invest in Bitcoin. This triggered wildly optimistic predictions for BTC’s price. Instead, BTC fell. According to experts, in theory, it is possible that the selling pressure will ease now that FTX has completed the sale of its significant assets. Because it’s a relatively unique event for a bankruptcy estate to liquidate its assets.
Grayscale offloads Bitcoin to Coinbase
Recently, Grayscale transferred 15,308 BTC to Coinbase wallets. Thus, the number of BTCs Grayscale sent to Coinbase reached 19,258 (worth $780 million). On-chain analytics platform Lookonchain shared the following on the subject:
Grayscale deposited 15,308 BTC ($623.8 million) to CoinbasePrime 50 minutes ago. Since the adoption of the ETF, Grayscale has deposited 63,991 BTC ($2.68 billion) into CoinbasePrime during the opening hours of U.S. equities (1:30 p.m. ET). According to Arkham, Grayscale currently holds 549,116 BTC ($22.32 billion).
Alameda Research withdraws lawsuit against Grayscale
FTX subsidiary Alameda Research has withdrawn its lawsuit against Grayscale Investments, according to a court document Monday. The lawsuit accused Grayscale of “serving benefits at the expense of shareholders’ interests.” Alameda’s lawsuit, filed in Delaware court in March last year, accused Grayscale of charging high fees and refusing to allow investors to redeem their shares in two cryptocurrency-focused trust funds.
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