With the approval of Bitcoin ETF's in the US, many were expecting to see the gains in Bitcoin's price to continue, but despite optimistic forecasts that the long-awaited ETFs would trigger a bitcoin price surge, the opposite happened - now we're learning why.
Heavy selling by FTX's bankruptcy estate appears to be a major contributor to bitcoin's price drop since the launch of US ETFs.
The Grayscale Bitcoin Trust (GBTC) was among those receiving ETF approval, so they converted their 'Trust' account into an ETF on January 11.
FTX had purchased 22.3 million shares of GBTC valued at $597 million in October 2022, but when this converted to an ETF the value of FTX's position jumped to around $900 million.
This is when FTX liquidators decided it was time to sell, all of it.
FTX's bankruptcy estate dumped 22 million GBTC shares worth close to $1 billion since ETFs were approved.
The irony is painful - Bitcoin ETFs finally receive approval, the crypto world celebrates this 'new gateway for mainstream investors' to get in the crypto market, logically many expected a boost in demand and price.
Instead, we're once again helpless and unable to do anything but watch Bankman-Fried's actions lead to consequences for people far outside of FTX. Their liquidation spree officially put a dampener on any immediate ETF boosts to the market.
The Bright Side...
Now that FTX has sold its full position, pressure to sell may greatly decrease, bringing back the bull market.
But for now, bears remain in control as today brought more downward movement.
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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News
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