{"id":516047,"date":"2022-11-26T00:30:00","date_gmt":"2022-11-25T21:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/"},"modified":"2022-11-26T00:30:00","modified_gmt":"2022-11-25T21:30:00","slug":"crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/","title":{"rendered":"# Crypto Biz: Institutions short Bitcoin as SBF is \u2018deeply sorry\u2019 for FTX collapse"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3e3a15ae856\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3e3a15ae856\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/#%E2%80%9D_Crypto_Biz_Institutions_short_Bitcoin_as_SBF_is_%E2%80%98deeply_sorry_for_FTX_collapse_%E2%80%9C\" >&#8221; Crypto Biz: Institutions short Bitcoin as SBF is \u2018deeply sorry\u2019 for FTX collapse &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/#Sam_Bankman-Fried_says_he_is_%E2%80%98deeply_sorry_for_collapse_in_letter_to_FTX_team\" >Sam Bankman-Fried says he is \u2018deeply sorry\u2019 for collapse in letter to FTX team<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/#FTX_owes_over_3_billion_to_its_50_biggest_creditors_Bankruptcy_filing\" >FTX owes over $3 billion to its 50 biggest creditors: Bankruptcy filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/#FTX_crisis_leads_to_record_inflows_into_short-investment_products\" >FTX crisis leads to record inflows into short-investment products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/#US_senators_urge_Fidelity_to_reconsider_its_Bitcoin_offerings_after_FTX_blow-up\" >US senators urge Fidelity to reconsider its Bitcoin offerings after FTX blow-up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\/#Before_you_go_Could_Grayscale_trigger_the_next_Bitcoin_price_collapse\" >Before you go: Could Grayscale trigger the next Bitcoin price collapse?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_Biz_Institutions_short_Bitcoin_as_SBF_is_%E2%80%98deeply_sorry_for_FTX_collapse_%E2%80%9C\"><\/span>&#8221; Crypto Biz: Institutions short Bitcoin as SBF is \u2018deeply sorry\u2019 for FTX collapse &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvMzJhYzdiMmItMTM1Ny00ODhmLWExN2EtYjM5ODgzZDMwNmFlLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5129e2ea>The monumental collapse of FTX will go down as one of the biggest corporate scandals of all time. But, at least Sam Bankman-Fried, or SBF, is sorry. On Nov. 22, the disgraced founder of FTX penned a letter to his former employees describing his role in the company\u2019s bankruptcy. \u201cI never intended this to h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en,\u201d he wrote. \u201cI did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash.\u201d Get this: SBF still thinks the company can be saved because \u201cthere are billion of dollars of genuine interest from new investors.\u201d Shouldn\u2019t he be preoccupied with trying to avoid jail right now?<\/p>\n<p>Bitcoin (BTC) and the broader crypto market have been reeling in the wake of the scandal. While this has allowed many diamond handed hodlers to accumulate more BTC on the cheap, institutional investors are using this opportunity to short the market. We may finally get that final capitulation to round out the current four-year cycle. <\/p>\n<p>As always, this week\u2019s Crypto Biz <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter delivers all of the latest high-profile business news from our industry. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sam_Bankman-Fried_says_he_is_%E2%80%98deeply_sorry_for_collapse_in_letter_to_FTX_team\"><\/span>Sam Bankman-Fried says he is \u2018deeply sorry\u2019 for collapse in letter to FTX team<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>SBF\u2019s letter to former FTX employees painted the picture of a deeply remorseful founder who managed to squander billions because of excessive margins and poor oversight. He also blamed the \u201crun on the bank\u201d for FTX\u2019s ultimate demise. For those of you keeping track, the bank run that SBF mentioned was triggered by Binance CEO Changpeng Zhao who, on Nov. 6, disclosed on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> \u2014 of all places \u2014 that he would be selling $500 million worth of FTX tokens. That announcement triggered a tidal wave of redemptions on FTX as users rushed for the exit. Within 48 hours, FTX was shown to be insolvent. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"FTX_owes_over_3_billion_to_its_50_biggest_creditors_Bankruptcy_filing\"><\/span>FTX owes over $3 billion to its 50 biggest creditors: Bankruptcy filing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The hole in FTX\u2019s balance sheet is estimated to be worth around $8 billion \u2014 and a huge portion of that is owed to just 50 people. New bankruptcy filings in the state of Delaware confirmed this week that FTX\u2019s top 50 creditors are owed a combined $3.1 billion. One individual is owed more than $226 million, while the rest of the top 50 had anywhere between $21 million and $203 million on the failed derivatives exchange. So, when can FTX creditors expect to get some of their money back? It could take years or even decades, according to insolvency lawyer Stephen Earel. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">FTX discloses its top 50 creditors are owed $3.1 billion. <\/p>\n<p>The largest creditor is owed $226 million.<\/p>\n<p>All names were redacted. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/JGeddvMB7w\">pic.twitter.com\/JGeddvMB7w<\/a><\/p>\n<p>\u2014 Tom Dunleavy (@dunleavy89) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/dunleavy89\/status\/1594401172537974784?ref_src=twsrc%5Etfw\">November 20, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3><span class=\"ez-toc-section\" id=\"FTX_crisis_leads_to_record_inflows_into_short-investment_products\"><\/span>FTX crisis leads to record inflows into short-investment products<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Believers in Bitcoin as a sound money alternative to the current monetary regime have used the latest market collapse to accumulate more BTC. But, for some institutional investors, the FTX collapse has triggered a new shorting opportunity. According to CoinShares, 75% of institutional crypto investments last week went to short investment products. In other words, they\u2019re betting that Bitcoin and other crypto assets will see a further decline in price. BTC has already plunged to around $15,500, marking a new low for the cycle. Although Bitcoin can go much lower, we are nearing the end of the current four-year cycle. So, the bottom could be close.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"US_senators_urge_Fidelity_to_reconsider_its_Bitcoin_offerings_after_FTX_blow-up\"><\/span>US senators urge Fidelity to reconsider its Bitcoin offerings after FTX blow-up<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Fidelity Investments, one of the earliest institutional backers of digital assets, is being strongly urged by members of Congress to limit its Bitcoin investment offerings. This week, Senators Elizabeth Warren, Tina Smith and Richard Durbin once again called on Fidelity to reconsider its Bitcoin 401(k) product offering in the wake of the FTX disaster. \u201cSince our previous letter [from July 26, 2022], the digital asset industry has only grown more volatile, tumultuous, and chaotic\u2014all features of an asset class no plan sponsor or person saving for retirement should want to go anywhere near,\u201d the senators wrote. The crypto skeptics can take their victory lap for now, but Bitcoin will get the last laugh. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The implosion of FTX has made it clear that the digital asset industry has serious problems. I joined <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SenWarren?ref_src=twsrc%5Etfw\">@SenWarren<\/a> &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SenTinaSmith?ref_src=twsrc%5Etfw\">@SenTinaSmith<\/a> to urge Fidelity to do what is best &amp; reconsider its decision to expose retirement accounts &amp; employer-sponsored plans to these volatile assets. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/qQn4PF80AP\">pic.twitter.com\/qQn4PF80AP<\/a><\/p>\n<p>\u2014 Senator Dick Durbin (@SenatorDurbin) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SenatorDurbin\/status\/1594827275639431172?ref_src=twsrc%5Etfw\">November 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Before_you_go_Could_Grayscale_trigger_the_next_Bitcoin_price_collapse\"><\/span>Before you go: Could Grayscale trigger the next Bitcoin price collapse?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Concerns around Grayscale\u2019s Bitcoin Investment Trust (GBTC) began to mount last week after the company refused to provide on-chain proof of its reserves. Now, investors are worried about whether Grayscale\u2019s parent company, Digital Currency Group (DCG), could be forced to liquidate a portion of its GBTC to cover a massive hold in Genesis Global Trading\u2019s balance sheet. What\u2019s the relationship between DCG, GBTC and Genesis? In this week\u2019s Market Report, Marcel Pechman and I discuss this relationship and why it matters to Bitcoin investors. You can watch the full replay below.<\/p>\n<p><iframe loading=\"lazy\" title=\"Could a Grayscale Bitcoin Trust collapse be the next black swan event?\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/RT3g5A1BRj4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><em>Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-biz-institutions-short-bitcoin-as-sbf-is-deeply-sorry-for-ftx-collapse\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto Biz: Institutions short Bitcoin as SBF is \u2018deeply sorry\u2019 for FTX collapse &#8220; The monumental collapse of FTX will go down as one of the biggest corporate scandals of all time. But, at least Sam Bankman-Fried, or SBF, is sorry. On Nov. 22, the disgraced founder of FTX penned a letter to his&#8230;<\/p>\n","protected":false},"author":1,"featured_media":516048,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvMzJhYzdiMmItMTM1Ny00ODhmLWExN2EtYjM5ODgzZDMwNmFlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[135234,76550,89897,117,73711,70289],"class_list":["post-516047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-ftx","tag-grayscale","tag-sam-bankman-fried","tag-business","tag-investments","tag-senate"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/516047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=516047"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/516047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/516048"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=516047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=516047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=516047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}