Following its downfall in 2023, FTX has seen its repayment plan approved, with one analyst suggesting the decision could lead to $2.4 billion entering the crypto market in Q4 of this year. Indeed, the plan is expected to have a notable impact on the digital asset sector. Specifically, driving significant funds to re-enter the market this year.
The FTX reorganization plan had been long-awaited by the industry. Monday, US District Judge John Dorsey approved the estate of the now-defunct cryptocurrency exchange to follow through on its repayment plan. Moreover, that plan will lead to $16 billion in recovered assets being redistributed to creditors.
Also Read: FTX Wallet Unstakes Millions: Is a Solana Selloff Imminent?
FTX Repayment Plan Could Be Massive for Crypto, Analyst Suggests
The downfall of FTX remains one of crypto’s pivotal moments. It saw the plummeting legacy of one of the prevailing brands of strength that the industry had relied upon. Moreover, it eroded the trust many had been developing in the cryptocurrency sector. Yet, a lot has changed in a year, as the market looks to be as prominent as it ever has been.
IN 2024, two crypto-based ETFs have been approved. Additionally, Bitcoin surged to an all-time high price of $73,000 in March. All of that has signified an important place that the leading crypto has ensured within the growing sector. According to one analyst, that couldn’t have come at a better time.
With the FTX repayment plan officially being approved, one analyst has predicted that it could cause more than $2.4 billion in funds to enter the crypto market in Q4. Indeed, K33 analysts have suggested the move could be huge for BTC as it entered the final month of the year.
Also Read: FTX and Alameda Research to Pay $12.7B in CFTC Settlement
The plan notes that credits with less than $50,000 in approved claims will begin receiving repayments in 60 days. Therefore, creditor payouts are likely to be in late Q4 2024. Alternatively, larger claims are predicted to take much longer to pay out. A resolution to those claims is unlikely to arrive until the middle of 2025.
The analysts state that $3.9 billion in claims was purchased by credit funds. Therefore, those are unlikely to reenter the market. However, there is still a significant number of potential funds that could be injected into crypto. That specific figure exceeds the aforemetniont $2.4 billion total.
