Europe’s largest digital asset investment and trading group – CoinShares – revealed that approximately 11% of its total net asset value is situated on the crypto exchange FTX. Another firm experiencing similar issues is Mike Novogratz’s Galaxy Digital, which holds more than million worth of exposure to the troubled firm. In a recent interview for Bloomberg, CoinShares said nearly million of its exposure to FTX consists of US dollars and Circle’s stablecoin USDC. Pending withdrawals of 190 BTC and 1,000 ETH account for the remaining over million. The company’s CEO – Jean-Marie Mognetti – stated the assets were part of the capital markets division and accounted for proprietary trading operations. The boss added that potential losses had not affected CoinShares’
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Europe’s largest digital asset investment and trading group – CoinShares – revealed that approximately 11% of its total net asset value is situated on the crypto exchange FTX.
Another firm experiencing similar issues is Mike Novogratz’s Galaxy Digital, which holds more than $76 million worth of exposure to the troubled firm.
- In a recent interview for Bloomberg, CoinShares said nearly $26 million of its exposure to FTX consists of US dollars and Circle’s stablecoin USDC. Pending withdrawals of 190 BTC and 1,000 ETH account for the remaining over $4 million.
- The company’s CEO – Jean-Marie Mognetti – stated the assets were part of the capital markets division and accounted for proprietary trading operations.
- The boss added that potential losses had not affected CoinShares’ exchange-traded funds. The organization also has no exposure to FTX’s sister company Alameda Research.
- The problems for SBF’s trading venue started a few days ago when Binance decided to liquidate all its FTT tokens.
- The coin’s price crashed shortly after the announcement and currently trades at around $2.90 (a nearly 90% decline compared to last week’s figures).
- While Bankman-Fried initially assured that FTX and its assets were “fine,” the entity paused certain operations, such as withdrawals, which caused severe panic.
- In the following hours, the CEO changed his stance and said Binance will acquire his trading venue to stabilize its liquidity issues.
- Despite confirming the news at first, the world’s largest crypto exchange withdrew its intentions to purchase FTX, outlining that “the issues are beyond our control or ability to help.”
- Speaking on the matter, CoinShares’ CEO said dealing with cryptocurrencies on exchanges might be easy for market participants, but they should know this hides its risks:
“For too long, things like FTX have been perceived by investors as a quasi-bank or quasi-financial institution, which it is not. We can all trade crypto at an exchange, but you are exposing yourself to a variety of risks which are not really in your favor.”
- CoinShares offers an exchange-traded fund called FTX Physical FTX Token. It has plummeted over 90% since the FTX’s meltdown began.
CFTT Graphics, Souce: Bloomberg
