FTX Creditors Seek Crypto Repayments; Bitcoin ETF Debut Records $4.5B Trading Volume.
Summary:
FTX creditors are pushing for repayments to be made in cryptocurrency form to capitalize on the latest market surge. On the debut day of Bitcoin spot ETFs, Vanguard has reportedly barred its clients from the new offerings, stirring departure threats from some users. Nonetheless, the first day of trading for these ETFs saw trading volumes hit $4.5 billion, with BlackRock's iShares Bitcoin Trust (IBIT) recording over $1 billion in volume.
FTX debt holders are insisting on repayments in cryptocurrency form, anxious about missing the recent surge in the crypto market. As Bitcoin spot exchange-traded funds (ETFs) made their debut on primary exchanges, billions of dollars poured in on January 11. Despite this, some asset managers are declining to participate, with indications that they are barring their clients from availing the novel exchange-traded offerings.
With FTX proposing to pay back customers in U.S. dollars, based on the value of cryptocurrencies during its bankruptcy proceedings in November 2022, creditors are pushing for repayments in the same cryptocurrency they invested in, so as to capitalize on the recent market rally.
Major cryptocurrencies held by FTX customers - Bitcoin (BTC), Ether (ETH), and Solana (SOL), have witnessed considerable growth post FTX's declaration of bankruptcy. Meanwhile, investment management company Vanguard's controversial choice to not support the acquisition of Bitcoin spot ETFs on its platform has led to some clients threatening to close their accounts.
In a public statement, Vanguard defended its stance, asserting that spot Bitcoin ETF purchases will not be facilitated on its platform and it has no intention of launching Bitcoin ETFs or similar crypto-focused offerings. They maintained that their services are centered around traditional asset classes, which they perceive as the cornerstone of a balanced, long-term investment portfolio.
Despite this, the launch of Bitcoin ETFs has been successful, drawing in a staggering $4.5 billion in total volume on the inaugural day. Big players such as BlackRock, Grayscale, and Fidelity were among those asserting the highest volumes. In particular, the iShares Bitcoin Trust (IBIT) from BlackRock claimed the top spot, amassing just over $1 billion in volume, which represented 22% of the entire group's volume.
Hot on IBIT's heels, Fidelity's Bitcoin ETF, termed FBTC, recorded a trading volume of almost $685 million. Grayscale's Bitcoin ETF, identified by the ticker GBTC, reported total volume of $2.2 billion - a transformation of its pre-existing Bitcoin Trust.
While investing and trading come with their risks, potential investors are encouraged to conduct their own research before reaching any financial decisions. This report does not offer investment advice or suggestions.
Published At
1/12/2024 2:30:46 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.