• FTX’s illiquid holdings are filled with tokens that are held in venture funds in which it has invested.
• Bitcoin and Ether are currently in the red, with Bitcoin down 2% and Ether down 3.2%.
• Layer 1 blockchain Solana has experienced a sharp rally due to the success of its native token, SOL.
FTX is a crypto exchange that has made a name for itself by investing in venture capital funds and gaining exposure to tokens that are not easily traded on traditional exchanges. These illiquid tokens, which are held by the venture funds, can be found on FTX’s balance sheet. Among the funds that FTX has invested in are Sino Global and Multicoin Capital. When these funds announce new projects, FTX is often listed as one of the co-investors.
Meanwhile, Bitcoin and Ether have been in the red, with Bitcoin down 2% on the day and Ether down 3.2%. This comes even as the S&P 500 and gold have both seen positive gains.
On the Layer 1 blockchain front, Solana has been performing well thanks to the success of its native token, SOL. The token has been on a hot streak since the beginning of the year, and is currently up more than 470% over the past month.
In addition to its investments in venture funds, FTX has also been making waves with its derivatives products. The exchange recently launched a Bitcoin volatility index, which allows traders to bet on the future volatility of Bitcoin prices. FTX has also announced plans to offer synthetic ETFs, which will track the performance of traditional S&P 500 stocks.
It remains to be seen how the market will react to FTX’s illiquid holdings and its efforts to offer new derivatives products. For now, investors will have to keep an eye on the market to see how the exchange’s investments and products affect the price of Bitcoin and Ether.