Magnet Capital: Some of the FTX repayment funds may flow back into the crypto market and become a potential price catalyst

Creditors of bankrupt cryptocurrency exchange FTX will receive more than $12 billion in the coming months under a court-approved payment plan, raising the possibility that some of the cash could be reinvested in digital assets. According to information released by FTX, the group has recovered between $14.7 billion and $16.5 billion, with creditors claiming $11.2 billion. Benjamin Celermajer, co-chief investment officer of Magnet Capital, said the expected FTX repayment "is actually providing liquidity to known cryptocurrency traders. There is a good chance that we will see some of the funds flow back into the crypto market, providing a potential price catalyst for illiquid markets." It is worth noting that the repayment will not happen immediately, and FTX must first form a trust and hire a company to oversee the fund distribution process. (Bloomberg)