[NEWS] FTX bankruptcy estate to sell Grayscale-backed GBTC worth approximately 148 billion yen

It has been revealed that the bankruptcy foundation of FTX, a cryptocurrency exchange that went bankrupt in 2022, has sold all of its Grayscale Bitcoin Trust (GBTC). On the 23rd, US cryptocurrency media CoinDesk reported.

FTX reportedly held 22.3 million shares of GBTC as of October 25, 2023. According to reports, FTX has sold and cashed out more than $1 billion (approximately 148 billion yen) since GBTC was converted into an ETF. The sale of the Bitcoin spot ETF also affected the price of Bitcoin (BTC), which is below $40,000 (approximately 5.92 million yen) as of the time of writing.

Bitcoin prices were on the rise before the spot ETF was approved, and at one point even exceeded $47,000 (approximately 6.95 million yen). The creation of the Bitcoin Spot ETF has made it easier for ordinary investors who trade in existing financial institutions to enter the cryptocurrency space, which has led to growing expectations for the future.

Since the Bitcoin Spot ETF was approved, the price of Bitcoin has fallen, but this was due to a large-scale sale by FTX. However, this sale was only due to FTX's bankruptcy estate liquidating its assets, and it is quite possible that the selling pressure will ease in the future as all of its holdings have been sold.

Bitcoin Spot ETF fee competition may also be a factor

The selling pressure on GBTC may also be due to the high trading fees of the ETF. GBTC's fees are set at 1.5%, which is higher than other Bitcoin Spot ETFs.

Currently, there is a competition over trading fees for Bitcoin Spot ETFs. In particular, Invesco is focusing on locking in customers by offering free fees for a limited time or until assets are recorded to a level set by the company.

As a result, some investors are dissatisfied with the fees and are calling for them to switch from GBTC.

Reference:CoinDesk, US
Image: Shutterstock

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