FTX Gets Court Approval to Sell $873M Worth of Grayscale, Bitwise Trust Assets

The
FTX
estate
was
granted
approval
to
sell
its
trust
assets,
including
shares
of
Grayscale
and
Bitwise
investment
funds
worth
roughly
$873
million,
according
to
a

Delaware
bankruptcy
court
document
filed
on
Friday
and
CoinDesk
analysis.

“The
debtors
are
authorized,
but
not
directed,
to
execute
sales
of
the
trust
assets,
in
their
reasonable
business
judgment,
in
accordance
with
the
following
sale
procedures,”
the
filing
said.

The
court
also
expanded
crypto
investment
firm
Galaxy’s
mandate
to
assist
FTX
in
the
sales
of
its
trust
assets,
according
to
a
Tuesday
court
filing.
FTX

tapped
Galaxy
earlier
this
year
to
manage
the
estate’s
vast
digital
asset
holdings.

FTX’s
trust
assets
include
shares
in
various
Grayscale
funds,
including
in
Grayscale
Bitcoin
Trust
(GBTC)
and
a
Bitwise
crypto
index
fund,
which
was
worth
a
total
of
$744
million
as
of
October
25,
according
to
a

court
document
filed
on
Nov.
3.

However,
FTX’s
trust
holdings
now
could
be
worth
even
more,
about
$873
million,
as
GBTC’s
discount
to
its
net
asset
value

has
narrowed
with
bitcoin
rally,
according
to
CoinDesk’s
calculation
based
on
the
reported
shareholdings
in
the
court
filing
and
Wednesday
market
closing
prices
per
TradingView
data.
The
roughly
17%
appreciation
since
Oct.
25
can
be
explained
by
the
rally
in
cryptocurrency
prices
over
the
past
month.

The
crypto
exchange,
once
helmed
by
Sam
Bankman-Fried,
was
one
of
the
world’s
largest
trading
platforms
before
it
went
bankrupt
in
November
last
year
following
a
CoinDesk
report
revealing
the
shaky
balance
sheet
of
FTX
sister
trading
firm
Alameda
Research.

Read
more:



What
Happens
to
GBTC
Discount
When
FTX
Sells
its
Holdings?

UPDATE
(Nov.
29,
22:53
UTC):

Adds
detail
about
the
current
estimated
market
value
of
trust
assets
using
Wednesday
market
closing
prices.

UPDATE
(Nov.
29,
23:26
UTC):

Adds
detail
about
Galaxy
Digital
assisting
in
selling
trust
assets.