FTX, currently in bankruptcy recovery, received permission from a Delaware court to sell its trust assets. These assets total almost $873M in value across Grayscale and Bitwise investment shares. This is part of a planned attempt to meet the demands of the bankruptcy and move toward financial recovery.
FTX had previously contracted with Galaxy, a renowned crypto investment firm, to handle asset management. Galaxy's role now includes assisting in the sale of assets, reinforcing FTX's commitment to valuing its digital assets, and reducing its critical financial situation.
Trust assets with significant holdings in Grayscale Bitcoin Trust (GBTC) and a Bitwise crypto index fund gained 17% in value since October 25, almost reflecting the recent rise in crypto prices.
Bankrupt since November of last year, after transparency was brought to the financial strains at Alameda Research, a sibling organization, FTX estate's approval to dispose of trust assets is viewed as a critical step toward financial recovery. The court-appointed discretion granted to FTX confirms its ability to execute asset sales using strong business judgment.
