FTX Gains Approval to Sell Digital Asset Trust Shares
FTX, the beleaguered cryptocurrency exchange, has received court permission to sell its holdings in various digital asset trusts. This includes a significant portion of Grayscale and Bitwise trusts, cumulatively worth an estimated $873 million. This move is a key step in the ongoing effort to recover funds and repay creditors in the wake of FTX’s collapse.
A Closer Look at FTX’s Digital Assets
FTX’s digital holdings are extensive, comprising over 32 million shares across five Grayscale trusts and the Bitwise 10 Crypto Index Fund. The assets have appreciated in value, rising from $744 million in October to their current valuation, boosted by the upward trend in cryptocurrencies like Bitcoin and Ethereum.
Grayscale Trusts: A Gateway to Cryptocurrency Investment
Grayscale’s trusts provide investors a way to invest in cryptocurrencies without direct ownership. The trusts manage a substantial quantity of the underlying crypto assets. Notably, the Grayscale Bitcoin Trust holds an impressive $24 billion in Bitcoin.
The Fluctuating Premiums and Discounts of GBTC
GBTC and similar trusts have seen fluctuating premiums and discounts relative to the actual crypto assets they represent. The discount on GBTC, which once peaked at 49%, has recently narrowed, reflecting changes in investor sentiment.
Grayscale’s Ambitions and Regulatory Hurdles
Grayscale is actively pursuing the establishment of a Bitcoin spot exchange-traded fund (ETF) in the U.S., though it faces regulatory challenges from the SEC. The company’s recent court victory compels the SEC to review its Bitcoin ETF application, a significant step in Grayscale’s ambitions.
Forbes ’30 Under 30′ Highlights Crypto’s Influence
The crypto industry’s impact is evident in Forbes’ latest “30 Under 30” list for North American finance professionals. Nearly half of the honorees have ties to crypto, including Chipper Cash co-founder Ham Serunjogi and several high-profile crypto entrepreneurs.
Sam Bankman-Fried: From Forbes Cover to ‘Hall of Shame’
Sam Bankman-Fried, the former CEO of FTX, has experienced a dramatic fall from grace. Once celebrated by Forbes, he now tops their ‘Hall of Shame’ list, highlighting the volatile nature of fame and success in the tech and crypto industries.
