Research Summary
The report provides a detailed analysis of FTX’s top 10 cryptocurrency holdings, which the exchange is seeking regulatory approval to liquidate. The holdings, valued at $3.4 billion, are led by Solana (SOL), Bitcoin (BTC), and Ethereum (ETH), which collectively account for 56.3% of the portfolio. Other significant holdings include Aptos (APT), Tether (USDT), Ripple (XRP), BIT (BITDAO), Stargate Finance (STG), Wrapped Bitcoin (WBTC), and Wrapped Ethereum (WETH).
Key Takeaways
FTX’s Largest Holdings
- Solana’s Dominance: FTX’s largest holding is Solana, with approximately 55.8 million SOL, valued at $1.162 billion. This represents up to 10.0% of SOL’s total supply.
- Bitcoin and Ethereum’s Presence: Bitcoin and Ethereum follow closely, with FTX holding around 20.5k BTC and 112.6k ETH, equivalent to $560.0 million and $192.0 million respectively. However, these constitute a small portion of BTC’s and ETH’s circulating supply, at just 0.1% and 0.09% respectively.
- Portfolio Composition: SOL, BTC, and ETH collectively account for a substantial 56.3% ($1.9 billion) of FTX’s vast portfolio of $3.4 billion in cryptocurrency assets.
FTX’s SOL Unlock Schedule
- Vesting Schedule: A large portion of FTX’s SOL holdings are subject to a structured vesting schedule. The majority of these holdings consist of vested tokens (42.2 million tokens), which are not immediately tradable on the market.
- Monthly Release: Based on the vesting schedule, 618.4k SOL are unlocked every month. This monthly release represents approximately 1.1% of FTX’s total SOL holdings.
- Massive Unlock: A massive unlock of 7.5 million SOL is set to occur on March 1, 2025, constituting a substantial 13.5% of FTX’s total SOL holdings.
Altcoins & Stablecoins Holdings
- Aptos Holdings: FTX holds $137.0 million of APT, making up 4.0% of its total holdings. These 23.7 million tokens comprise about 10.4% of the current APT circulating supply.
- Ripple and Stargate Finance: FTX maintains a stake of $119.0 million worth of XRP and $46.0 million worth of STG, comprising 3.5% and 1.35% of its portfolio respectively.
- Stablecoin Holdings: In the realm of stablecoins, FTX holds $120.0 million worth of USDT as of August 31, compromising 3.5% of their total holdings.
Actionable Insights
- Monitor SOL’s Market Impact: Given FTX’s substantial holdings in SOL and the upcoming massive unlock of SOL tokens, it would be prudent to monitor the potential market impact.
- Assess Altcoin Exposure: FTX’s significant holdings in altcoins like APT and STG, which constitute a large percentage of their circulating supply, could have a significant market impact. Understanding the distribution between liquid and illiquid tokens due to vesting arrangements is crucial.
- Consider Stablecoin Holdings: FTX’s holdings in USDT, a stablecoin, could provide a buffer against market volatility. However, the implications of liquidating such a large amount should be considered.
