Crypto News – Following its conversion into an exchange-traded fund earlier this month, investors have liquidated more than $2 billion worth of the Grayscale Bitcoin Trust (GBTC).
The Enormous FTX Outflow: Company Sells Nearly $1 Billion of Grayscale Bitcoin ETFs
After years of delays, a number of spot bitcoin ETFs was finally approved by the U.S. Securities and Exchange Commission, and they started trading on January 11. Nonetheless, when the SEC accepted the Grayscale fund’s conversion to an ETF and approved ten newly established bitcoin ETFs, it had already been in existence for ten years and had amassed about $30 billion in assets.
Although there have been inflows into the new funds, which are managed by firms like BlackRock and Fidelity, billions of dollars’ worth of bitcoin have been removed from GBTC. According to the data CoinDesk saw, FTX was mostly responsible for that. The 22 million shares it sold for about $1 billion reduced FTX’s ownership stake in GBTC to zero.
BTC Price Declines Contrary to Expectations
Since the ETFs were approved, the price of Bitcoin (BTC) has dropped, which is a sharp contrast to the high expectations that existed prior to the SEC’s announcement of its decision. Bitcoin ETFs have been hailed as making it simpler for regular individuals to invest in the cryptocurrency, which has led to extremely bullish price projections for BTC. Rather, Bitcoin has decreased. Though a bankruptcy estate unloading shares is a somewhat rare occurrence, the selling pressure may lessen now that FTX has completed selling its sizable interests.