FTX Estate Wants to Hedge Bitcoin, Ethereum With Mike Novogratz’s Galaxy Digital


Bankrupt crypto exchange FTX is looking to put its remaining assets safe via hedging arrangements or put to work earning yield, per new court documents.

Lawyers in charge of the firm’s unwinding filed the request yesterday, asking the bankruptcy court if it’s allowed to stake, among other activities, its idle crypto.

The legal team has also requested they be allowed to sell certain digital assets the company has recovered, mainly Bitcoin and Ethereum.

“Hedging of Bitcoin and Ether—two digital assets for which there is a liquid hedging market—will provide a means to lessen the Debtors’ exposure to adverse price movements in Bitcoin and Ether prior to their sale,” reads the filing.

As part of what’s called their “Digital Asset Management and Monetization Program,” the company aims to enlist Mike Novogratz and Galaxy Digital as its investment adviser.

Novogratz and company will be charged with “creating and preserving value” for the FTX estate given a significant amount of funds are currently held in cryptocurrencies.

An April filing shows that of a whopping $6.2…

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