The Delaware court has given its approval for FTX to initiate the sale of trust assets belonging to Grayscale and Bitwise, currently valued at around $873 million.
As per records dated November 29, the Delaware court has granted FTX, a bankruptcy-exempt trading platform, permission to sell the trust assets and fund shares of Grayscale and Bitwise Trust after nearly a month of submitting the registration application.
At the time of the application on November 3, the total value of these assets was approximately $744 million. Presently, their value has surged to $873 million, with potential for further increases.
Among FTX’s asset portfolio, Grayscale’s Bitcoin Trust (GBTC) holds the largest share, valued at $597 million. Following closely is Grayscale’s Ethereum Trust (ETHE) with a valuation of $87 million.
FTX will facilitate the sale of these trust assets through collaboration with Galaxy Digital, one of the foremost cryptocurrency custodian companies in the United States. Additionally, Galaxy Digital will assist FTX in the liquidation of crypto assets valued at $3.4 billion in the near future, with a weekly cap set at $100 million.
The nature of these financial products, the trusts from institutional financial entities, is designed to provide investors with exposure to cryptocurrencies without requiring direct ownership of these assets. Therefore, the sale of these fund shares is objectively assessed to have less significant impacts compared to the direct dumping of cryptocurrencies.
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