Following the introduction of the Bitcoin (BTC) Spot exchange-traded fund (ETF), it was revealed that, despite its success, significant fund outflows occurred. At the center of this development was Grayscale Investments’ Grayscale Bitcoin Trust (GBTC), which sold more than $2 billion worth of GBTC shares.
Recently collected data from crypto news platform CoinDesk revealed that the collapse of FTX contributed significantly to this sell-off.
FTX’s role in GBTC’s big sell-off
The data shows that FTX was responsible for the sale of 22 million GBTC shares, with a combined market value of approximately $1 billion, representing almost half of the total outflows. FTX owned 22.3 million GBTC shares, which were valued at approximately $600 million as of October 2023. After the launch of Grayscale’s ETF, the value of these shares rose to approximately $900 million, after which FTX decided to liquidate the entire stake.
Contrary to expectations, the launch of the ETFs led to a decline in the Bitcoin value, partly due to the unexpected selling pressure from FTX. Despite this downward trend, investors remain confident in Bitcoin’s future appreciation. Interestingly, other ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT), are showing resilience despite market shocks. For example, IBIT reached $1 billion in assets under management in just four days, underscoring the diversity and resilience of the crypto market.
Whale sells 100,000 BTC
Another cause behind the strong selling pressure after the launch, according to analyst James van Straten, is also due to a remarkable sale of 100,000 Bitcoin by an unknown whale. The actions, together with the sale of FTX’s estate, caused the largest daily price drop in a year.
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2024-01-22 18:28:53
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