FTX Holdings May Impact Grayscale Bitcoin Trust as Creditor Wind Down Looms

FTX owns around $417M of Grayscale's Bitcoin Trust (GBTC) according to court filings. Analysts speculate on the impact to GBTC's discount when FTX winds down its holdings.

FTX intends to return funds to creditors in fiat, not crypto. It hired Galaxy Digital to help execute asset sales carefully to avoid crashing crypto prices.

GBTC is the world's largest crypto fund at over $21B AUM. Its discount to NAV recently narrowed amid bitcoin rally and hopes of converting to a spot ETF.

FTX sales may pressure GBTC's discount if no ETF conversion. SEC approval of a spot bitcoin ETF would aid FTX creditors and likely narrow GBTC's discount.

SEC rejection on alternate grounds could negate Grayscale's ETF application and widen GBTC's discount if holdings are sold off.