FTX Receives Court Approval to Sell Grayscale Assets Worth $744 Million
In a last minute development reported by Bloomberg, FTX has been granted court approval to commence the sale of Grayscale assets totaling $744 million. This decision comes as part of the ongoing efforts to recover assets from the bankrupt company.
Huge Holdings in Grayscale Products
FTX held a total of $744 million in asset manager Grayscale’s products. The breakdown of these holdings is as follows: $597 million in Bitcoin product GBTC, $87 million in Ethereum product ETHE, $53 million in BITW holding BTC, ETH, XRP, SOL, ADA, LINK, MATIC, DOT, LTC, and BCH, $3 million in Ethereum Classic product ETCG, $2 million in LTCN holding Litecoin, and $2 million in the Grayscale Digital Large Cap Trust product encompassing other large market value cryptocurrencies.
Market Reaction to Sale Approval
The news of the sale, particularly the potential offloading of the $597 million Bitcoin product, initially caused a slight dip in the price of BTC, bringing it to $37,600. However, it is important to note that the overall impact on the BTC price was not significant following FTX’s sale approval.
FTX’s Commitment to Market Stability
The court documents reveal that FTX is committed to selling the assets in a manner that maximizes their value without causing undue price volatility in the market. This approach is aimed at ensuring a smooth and controlled sale process that does not disrupt the broader market.
Successful Asset Recovery Efforts
The new management at FTX, tasked with handling the assets of the bankrupt company, has achieved significant success in recovering valuable assets. Thus far, they have managed to recover approximately $7 billion worth of assets, with $3.4 billion of that total represented in cryptocurrency assets.
Disclaimer: Not Investment Advice
It is important to note that the information provided in this article is not intended as investment advice. As with any financial decision, individuals should conduct their own thorough research and seek professional guidance before making any investment decisions.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
