On January 22, Bloomberg reported that the remnants of the defunct cryptocurrency exchange FTX and its affiliate hedge fund Alameda Research have offloaded over two-thirds of their holdings in the Grayscale Bitcoin Trust (GBTC). This information was attributed to "two people with knowledge of the situation." The sale reportedly generated at least $600 million for FTX Legacy.
Before January 11, when GBTC transitioned into a spot exchange-traded fund (ETF), FTX Properties owned approximately 22.28 million shares of GBTC, valued at $902 million at that time. Over the subsequent three days of trading, FTX sold off more than two-thirds of these shares. Consequently, its current holdings are under 8 million shares, estimated to be worth around $281 million.
Alameda Research had previously filed a lawsuit against Grayscale in March, accusing it of imposing excessive fees. Alameda also contended that Grayscale implemented a "self-imposed redemption ban," which barred shareholders from redeeming their Bitcoin Trust shares. Prior to January 11, most investors couldn't exchange their shares for the trust's underlying Bitcoin, and as of June 15, the trust's shares were trading at a 44% discount to the actual Bitcoin value.
The scenario shifted on January 11, following the SEC's approval of Grayscale Trust's conversion to an ETF, enabling redemptions for authorized participants. As a result, the discount of GBTC shares to their net asset value decreased significantly, aligning their prices more closely with the value of the Bitcoin they represent. Currently, GBTC trades at just a 0.27% discount to its net asset value per share, as per YCharts data.
Since January 11, over $700 million worth of Bitcoin has been sold from the Grayscale Bitcoin Trust. This sell-off is attributed by some analysts to investors leaving the fund due to its high fees. Additionally, on January 22, Alameda withdrew its lawsuit against Grayscale.
