Unexpected Revelation: FTX’s Massive Liquidation of Nearly 1 Billion GBTC Shares Leads to Major Net Outflow

Unexpected Revelation: FTX's Massive Liquidation of Nearly 1 Billion GBTC Shares Leads to Major Net Outflow

Unexpected Revelation: FTX's Massive Liquidation of Nearly 1 Billion GBTC Shares Leads to Major Net Outflow

According to data analyzed by Bloomberg analyst Eric Balchunas, since the Grayscale Bitcoin Trust (GBTC) successfully transformed into a spot ETF, GBTC has seen a net outflow of funds exceeding $2.8 billion over 6 trading days.

CoinDesk, citing insider sources, reported that a significant portion of these outflows came from the liquidation activities of the “bankrupt exchange, FTX”. CoinDesk pointed out that FTX has sold off its entire holdings of 22 million shares of GBTC, totaling nearly $1 billion. Meanwhile, FTX’s sister company, Alameda Research, has voluntarily dropped a lawsuit accusing Grayscale of charging excessive fees.

It is worth mentioning that the fact that “most of the GBTC outflows come from FTX liquidation” may change analysts’ views on the current Bitcoin trend. Initially, analysts generally believed that the recent decline in the secondary market for Bitcoin and the large-scale outflow of funds from GBTC were due to “most investors choosing to take profits after the successful transformation of GBTC”. However, if a large portion of the net outflows actually come from an independent event (FTX liquidation) rather than market activity itself, the interpretation of the fund flow may change.

According to Bloomberg ETF analyst Eric Balchunas’ estimation, about 35% of the current GBTC outflows are shifting towards new ETFs. However, with FTX completing the liquidation of GBTC, the proportion of GBTC outflows redirected to other Bitcoin ETFs may increase in the future.

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