Following the approval of spot Bitcoin exchange-traded funds (ETFs), the
crypto market has experienced a surprising downturn after FTX unloaded a staggering
$1 billion worth of Grayscale Bitcoin Trust’s (GBTC) shares.
This unprecedented sell-off, attributed to
the bankruptcy of the crypto exchange, has raised a concern about the broader implications
for the crypto sector. According to a report by Coindesk, FTX is a significant
contributor to the outflows amounting to more than $2 billion reported by GBTC.
CoinDesk‘s data review unveiled that FTX
disposed of 22 million shares, accounting for nearly $1 billion of the overall
outflow. Despite high expectations surrounding the approval of Bitcoin
Bitcoin
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term ETFs,
the crypto market has experienced a decline in Bitcoin’s price.
FTX leveraged the price difference between GBTC and
the value of the underlying Bitcoins. Holding 22.3 million GBTC valued at $597
million in October 2023, FTX’s move to liquidate its stake at $900 million
coincided with the launch of Grayscale’s Bitcoin ETF on January 11. The aftermath saw a drop in Bitcoin’s value,
prompting a reevaluation of the impact of the approval of the ETFs.
Last year, Alameda Research sued Grayscale to recover $250 million for FTX’s customers and creditors.
This legal tussle involves accusations of exorbitant fees and Grayscale’s alleged ban on redemption.
Alameda Research’s Grievances against Grayscale
FTX asserted that Grayscale violated
trust fund agreements by levying over $1.3 billion in management fees over the
last two years. Additionally, the exchange claimed that Grayscale hindered
shareholders from redeeming their shares, resulting in a significant drop in
the value of the Grayscale Bitcoin and Ethereum
Ethereum
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Read this Term Trusts.
However, Grayscale countered these
allegations, labeling the lawsuit “misguided”. According to a report
by Finance Magnates, a spokesperson from Grayscale defended the company’s
efforts to obtain regulatory approval for converting the Grayscale Bitcoin
Trust into an ETF.
Meanwhile, a US federal appeals court recently mandated the appointment of an independent bankruptcy examiner for FTX. This
occurred following the alleged misappropriation of $10 billion in customers’
assets.
Justifying its decision, the 3rd US
Circuit Court of Appeals in Philadelphia emphasized the mandatory nature of
appointing an independent examiner under the US Bankruptcy Code. However, FTX’s current CEO, John Ray,
and the committee of unsecured creditors opposed this step, citing concerns
about duplication of efforts and high costs that could diminish funds available
for distribution.
Following the approval of spot Bitcoin exchange-traded funds (ETFs), the
crypto market has experienced a surprising downturn after FTX unloaded a staggering
$1 billion worth of Grayscale Bitcoin Trust’s (GBTC) shares.
This unprecedented sell-off, attributed to
the bankruptcy of the crypto exchange, has raised a concern about the broader implications
for the crypto sector. According to a report by Coindesk, FTX is a significant
contributor to the outflows amounting to more than $2 billion reported by GBTC.
CoinDesk‘s data review unveiled that FTX
disposed of 22 million shares, accounting for nearly $1 billion of the overall
outflow. Despite high expectations surrounding the approval of Bitcoin
Bitcoin
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term ETFs,
the crypto market has experienced a decline in Bitcoin’s price.
FTX leveraged the price difference between GBTC and
the value of the underlying Bitcoins. Holding 22.3 million GBTC valued at $597
million in October 2023, FTX’s move to liquidate its stake at $900 million
coincided with the launch of Grayscale’s Bitcoin ETF on January 11. The aftermath saw a drop in Bitcoin’s value,
prompting a reevaluation of the impact of the approval of the ETFs.
Last year, Alameda Research sued Grayscale to recover $250 million for FTX’s customers and creditors.
This legal tussle involves accusations of exorbitant fees and Grayscale’s alleged ban on redemption.
Alameda Research’s Grievances against Grayscale
FTX asserted that Grayscale violated
trust fund agreements by levying over $1.3 billion in management fees over the
last two years. Additionally, the exchange claimed that Grayscale hindered
shareholders from redeeming their shares, resulting in a significant drop in
the value of the Grayscale Bitcoin and Ethereum
Ethereum
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Read this Term Trusts.
However, Grayscale countered these
allegations, labeling the lawsuit “misguided”. According to a report
by Finance Magnates, a spokesperson from Grayscale defended the company’s
efforts to obtain regulatory approval for converting the Grayscale Bitcoin
Trust into an ETF.
Meanwhile, a US federal appeals court recently mandated the appointment of an independent bankruptcy examiner for FTX. This
occurred following the alleged misappropriation of $10 billion in customers’
assets.
Justifying its decision, the 3rd US
Circuit Court of Appeals in Philadelphia emphasized the mandatory nature of
appointing an independent examiner under the US Bankruptcy Code. However, FTX’s current CEO, John Ray,
and the committee of unsecured creditors opposed this step, citing concerns
about duplication of efforts and high costs that could diminish funds available
for distribution.