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FTX’s Crash: Brought Bitcoin Price Below $40K

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FTX, the bankrupt cryptocurrency firm, has sold $1 billion worth of Grayscale Bitcoin Trust (GBTC) shares, reducing its stake to zero. The sale comes after GBTC converted into an exchange-traded fund earlier this month. FTX held 22.3 million GBTC shares before the sale, valued at $597 million. The conversion of GBTC into an ETF was followed by the approval of multiple new Bitcoin ETFs by the SEC. GBTC has seen significant outflows recently, with FTX’s sales accounting for a large portion of the decline. FTX also holds shares in other Grayscale trusts and a statutory trust managed by Bitwise, but it is unclear if these holdings will be sold off as well. Since the launch of Bitcoin ETFs, the price of Bitcoin has declined, contrary to bullish expectations. FTX’s strategic move to offload GBTC shares has made the market dynamics more complex and may ease the selling pressure on GBTC shares in the future.

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