K33 Analysts: ~$2.4 Billion in FTX Creditor Payouts Likely to Be Re-Injected into Cryptocurrency Markets

On October 8, K33 analysts Vetle Lunde and David Zimmerman estimated that payouts will begin late this quarter and continue through early Q1 2025, within 60 days of the court's effective date, which remains uncertain but is expected to be in mid-November. Of the $14.4 billion to $16.3 billion payout vaccine, analysts estimate that $3.9 billion has been purchased by credit funds and is unlikely to return to the market, and that approximately 33% of the remaining payout is owned by sanctioned countries/territories, insiders, and those who have not been KYC-verified and are not able to access their claims. That leaves $8 billion, of which they expect 20 to 40 percent to be deposited into the cryptocurrency market, or about $2.4 billion in the middle of that range, as “FTX's trader base consists of aggressive risk-takers native to cryptocurrencies. The process is likely to unfold in multiple waves over the next year, however, meaning its overall impact on the crypto market is likely to be mild. (The Block)