Investors Dumped $2 Billion GBTC Share Since ETF Approval: FTX Tops The List
Over $2 billion in GBTC shares sold since ETF conversion; FTX estate offloads $1 billion amid Bitcoin's price fall.
Investors sold over $2 billion of Grayscale Bitcoin Trust (GBTC) shares since it became an ETF. Recently, FTX's bankruptcy estate sold 22 million shares, a huge chunk of the $2 Billion sale.
GBTC existed for ten years and held nearly $30 billion in assets. After becoming an ETF, it faced competition from new funds like those from BlackRock and Fidelity. Unlike these new funds, GBTC saw a large withdrawal of investment, many think this is due to their high fees.
FTX sold all its GBTC shares, worth about $1 billion. This sale happened as Bitcoin's price fell, contrary to expectations that Bitcoin ETFs would boost its price.
FTX used to profit from the difference in Grayscale trust shares and actual Bitcoin value. The value of their GBTC holdings peaked at around $900 million. FTX held shares in multiple Grayscale trusts and a Bitwise trust, managed by ED&F Man Capital Markets (now Marex Capital Markets), who declined to comment.
Alameda Research, related to FTX, dropped a lawsuit against Grayscale over high fees. This happened as Grayscale's ETF started trading and FTX was selling its shares
