- Grayscale Bitcoin Trust (GBTC) stock is falling alongside the price of Bitcoin (BTC-USD).
- This move comes alongside recent bankruptcy drama from crypto exchange FTX.
- Cathie Wood is using the dip to increase her stake in GBTC stock.
Grayscale Bitcoin Trust (OTCMKTS:GBTC) stock is in the news this week as a falling crypto price has some investors jumping in hoping for a recovery.
Grayscale Bitcoin Trust allows investors to gain Bitcoin (BTC-USD) exposure without directly investing in the cryptocurrency. As such, the price of GBTC stock is closely tied to the price of BTC.
That’s where the recent movement surrounding GBTC stock comes into play. The crypto market has been in a bit of a tizzy lately and Bitcoin has been no exception. As a result, the crypto has been falling lately, currently trading for about $16,500 per coin as of this writing.
What’s Behind the Fall?
The collapse of FTX is to blame for the recent bearish sentiment surrounding crypto. The crypto exchange is filing for bankruptcy after rival Binance (BNB-USD) liquidated $530 million worth of FTX Token (FTT-USD), the native token of the platform.
This resulted in other crypto traders doing the same, which caused the value of FTT to plummet. Investors should also note this move came after a report pointed out that Alameda Research, a sister company to FTX, had most of its value tied up in FTT crypto.
Of course, this has been causing major problems for crypto lately. But not everyone is selling on the news. With GBTC stock falling, investor Cathie Wood has decided to increase her stake. Wood bought 315,259 shares of GBTC stock through Ark Invest. Wood is likely hoping for a rebound in the shares once all the FTX drama dies down.
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