FTX Estate Drives GBTC Sales, FTT Thrives Amid Market Chaos

• FTT Tokens Surge Amid Prospects of Creditor Reimbursements
• Increased Trading Volumes for FTT
• FTT as a Speculative Instrument
• FTX's Bankruptcy Estate and GBTC Shares
• Continuing Climbing Claims on FTX Deposits
• Performance of FTT and Other Cryptocurrencies

FTT Tokens Surge Amid Prospects of Creditor Reimbursements

FTT, the crypto tokens of the erstwhile FTX$3.28 -5.38% exchange, saw an 11% rise triggered by the likelihood of creditor repayments. The claims have escalated to 80 cents on the dollar.

Increased Trading Volumes for FTT

The trading volumes of FTT experienced a substantial increase from $22 million on Sunday to $90 million. CoinGecko's data corroborates this surge. Under the former FTX exchange owned by Sam Bankman-Fried, these tokens gave holders the opportunity to avail certain advantages until its downfall in late 2022.

FTT as a Speculative Instrument

Since the collapse of FTX, the tokens have mainly been employed as speculative instruments. However, earlier instances of short-term price hikes have occurred due to plans of FTX's revival or creditor reimbursements.

FTX's Bankruptcy Estate and GBTC Shares

The recent price movement was spurred by reports of FTX's bankruptcy estate offloading 22 million shares of Grayscale's GBTC bitcoin exchange-traded fund (ETF), with an estimated worth of nearly $1 billion. This accounts for nearly half of all GBTC sales since its inaugural launch in early January.

Continuing Climbing Claims on FTX Deposits

Claims on FTX deposits exceeding $1 million have been on an upward trend. As of January 12, market prices have risen by 2 points compared to the previous week. The prices are anticipated to rise further in light of an impending Claims Estimation Hearing, according to information from Claims Markets, a platform that monitors bankruptcy claims.

Performance of FTT and Other Cryptocurrencies

On Tuesday morning, FTT was among the few gaining cryptocurrencies. Other major cryptocurrencies such as Bitcoin$42,260 -0.64% fell by 3.5% to $39,500 during the afternoon trading in Asia. Similarly, the index which monitors the top tokens by market capitalization saw a nearly 5% decline.

Edited by Jonathan Stoker