FTX Granted Court Approval for $744M Crypto Trust Asset Sale

• FTX Estate Receives Approval to Sell Trust Assets
• Trust Assets Sale
• FTX Trust Assets and Bankruptcy
• Implications of FTX's Asset Sale

FTX Estate Receives Approval to Sell Trust Assets

FTX$3.28 -5.38% estate has obtained authorization to sell its trust assets, including holdings in Grayscale and Bitwise investment funds, valuing approximately $744 million, according to a document filed in a New York bankruptcy court last Friday.

Trust Assets Sale

The court document states, The debtors are authorized, but not directed, to execute sales of the trust assets, in their reasonable business judgment, in accordance with the following sale procedures. Among the trust assets of FTX are holdings in a variety of Grayscale funds, including Grayscale Bitcoin$42,260 -0.64% Trust (GBTC) and a Bitwise crypto index fund. The combined estimated value of these assets stood at $744 million as of October 25, as per a court document filed on November 3.

FTX Trust Assets and Bankruptcy

Previously led by Sam Bankman-Fried, FTX was considered one of the largest global trading platforms before declaring bankruptcy in November of the previous year. This decision came in the wake of a report disclosing the unstable financial status of FTX's affiliate trading company, Alameda Research.

Implications of FTX's Asset Sale

The potential impact of FTX's decision to sell its holdings can have significant ramifications in the crypto market. Specifically, the sale of GBTC shares may influence the discount rate. As such, it should be a focal point for investors and market spectators alike.

Edited by Jonathan Stoker