Arca CIO: FTX asset sales are led by OTC, unlikely to be sold in large quantities via exchanges or TWAP

Odaily Planet Daily News Arca Chief Information Officer Jeff Dorman published an article on the X platform summarizing some key information about "the court approved FTX's sale of crypto assets", as follows: 1. It was Galaxy Asset Mgmt that won the bid, not their trading desk. They must act as trustees, selling gradually and opportunistically; 2. Galaxy has received a large number of reverse inquiries (some from real funds, some from pre-trial investigations). But asset sales are mainly done through OTC, and it is unlikely that there will be large sales through exchanges or TWAP. As long as there is a good offer, they will participate; 3. The $100 million weekly cap really doesn't matter. If they get a higher block bid, they can ask for court approval, and they don't have to sell any assets in any given week. $100 million is just a guideline to prevent sell-offs and harming the value of crypto assets; 4. The hedging will be opportunistic (e.g. long puts to offset a large decline in the portfolio); others believe Galaxy will be in a rush to sell $3 billion in futures, which is crazy; the goal is to move beyond static investing The performance of the portfolio, rather than turning bankruptcy funds into L/S funds; 5. Galaxy cannot rush and profit internally, it is illegal, and its asset management business is completely isolated from the prop desk and Novogratz (Galaxy Digital CEO) PA. This wasn't some half-baked plan, they'd fought in court for months to win the business and weren't going to take that risk; 6. Bankruptcy takes a long time, especially for a company as complex as FTX; the goal is to maximize the company's assets, not the speed of distribution. This may limit short-term gains from speculative selling, but this is not a fire sale; 7. If the sell-off does happen quickly, it's only because the market got bids and there was demand to digest it, which means bullish; if there are no bids, then the sell-off will slow down, which also means bullish (or at least will not have a negative impact); 8. So, you can trade however you want and evaluate what you want. But the sale process will be very controlled, opportunistic, perhaps painfully slow, but extremely orderly. It was reported yesterday that the court has approved FTX’s multi-billion dollar cryptocurrency liquidation plan, with a sales cap of $50 million in the first week and $100 million in subsequent weeks.