Defunct cryptocurrency exchange FTX has sold roughly $1 billion worth of shares in Grayscale's GTBC fund since the firm's instrument began trading lately as a spot bitcoin ETF, according to CoinDesk, which cited "private data" and unidentified sources.
The spot bitcoin ETF offered by Grayscale has outperformed other funds in terms of trading volume, largely due to withdrawals. According to Yahoo Finance data provided by The Block, as of Friday, Grayscale's fund had represented roughly 54% of trading volume since the new crypto-based ETFs started trading earlier this month.
Grayscale's fund has lost $2.8 billion since trading started, according to statistics released over the weekend by Eric Balchunas, senior ETF analyst at Bloomberg Intelligence.
As part of the ongoing bankruptcy proceedings for the defunct cryptocurrency exchange, Grayscale, FTX is selling off shares of its ETF, according to CoinDesk. Additionally, the bankruptcy estate stated in its report that FTX sold all 22 million of its shares.
FTX Creditors hoping to recoup losses
A Delaware bankruptcy court allowed FTX Trading and related debtors to begin selling their Grayscale shares at the end of November. At the time, FTX was worth $597 million, holding roughly 22 million shares in Grayscale's flagship bitcoin fund.
In November 2022, FTX declared bankruptcy. Through the sale of assets like the Grayscale shares, the exchange's creditors—among them, individual clients—hope to recover damages.
According to The Block's Price Page, the price of bitcoin has dropped from over $49,000 at the start of trading for spot bitcoin ETFs to less than $41,000 as of 10:58 a.m. ET.
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