According to Delaware bankruptcy court statements and CoinDesk reports on Nov 25, FTX has officially been given the go signal to sell its trust assets, particularly shares of Bitwise and Grayscale investments that amount to approximately $US873 million.
In the court filing, the debtors are approved to carry out sales of the mentioned digital assets through their management's decision, about following the sales procedures.
The Delaware court on Tuesday bolstered cryptocurrency investment firm Galaxy’s responsibilities to aid FTX in selling its trust assets. Earlier this year, the bankrupt FTX sought help from Galaxy to manage a wide range of digital asset holdings.
FTX stated that it wants to return the funds through fiat currency rather than crypto, such as Bitcoin and Ethereum, to avoid making dents on the $3 billion crypto holdings.
As per FTX lawyers' filing, hedging both Bitcoin and Ethereum will allow the firm debtors to minimize the possible negative impacts before selling the digital assets.
According to a court filing on Nov 3, FTX’s trust assets consist of shares of Grayscale funds, Bitwise crypto index fund, and Grayscale Bitcoin Trust, valued at approximately $744 million as of October 25.
On a side note, the FTX’s current worth of trust holdings is now valued up to $873 million because GBTC’s discount to its original price has dipped due to the Bitcoin price surge.
Share of the GBTC has narrowed to a two-year record of approximately 8.6%, as per Y charts data. Additionally, the calculations based on Coindesk’s reported shareholdings of Bitcoin also showed that the market closing prices of GBTC struggled to hike.
The crypto exchange was one of the largest trading platforms before it went bankrupt in 2022.Since the unveiling of the shaking balance sheet of FTX's sister trading company Almeda Research, the crypto world is off to a rough start.