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FTX Granted Court Approval to Sell $873M Worth Of Grayscale and Bitwise Trust Assets

FTX Granted Court Approval to Sell $873M Worth Of Grayscale and Bitwise Trust Assets
FTX Granted Court Approval to Sell $873M Worth Of Grayscale and Bitwise Trust Assets

FTX estate has been granted approval to sell its trust assets, which includes shares in Grayscale and Bitwise investment funds, worth approximately $873 million, according to a Delaware bankruptcy court document filed on Friday. The court has authorized FTX to execute sales of the trust assets in their reasonable business judgment, in accordance with the sale procedures mentioned in the filing.

Galaxy Digital, a crypto investment firm, has been given an expanded mandate to assist FTX in the sales of its trust assets, as per a Tuesday court filing. FTX had earlier appointed Galaxy to manage the estate’s digital asset holdings.

The trust assets of FTX include shares in various Grayscale funds, including Grayscale Bitcoin Trust (GBTC) and a Bitwise crypto index fund, which were worth a total of $744 million as of October 25, according to a court document filed on Nov. 3. However, the trust holdings of FTX could now be worth even more, approximately $873 million, as GBTC’s discount to its net asset value has narrowed with the rise in bitcoin prices, according to CoinDesk’s calculation based on the reported shareholdings in the court filing and Wednesday market closing prices per TradingView data.

The crypto exchange, which was once one of the world’s largest trading platforms, went bankrupt in November last year following a CoinDesk report revealing the shaky balance sheet of FTX sister trading firm Alameda Research.

This move is expected to help FTX in its efforts to restructure and repay its creditors.

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