Genesis Global Capital has received authorization to offload its stake in Grayscale’s Bitcoin Trust (GBTC), valued at approximately $1.3 billion.
Genesis Global Permitted to Liquidate $1.3 Billion in Bitcoin Trust Shares
According to Bloomberg, Genesis Global Holdco LLC secured Judge Sean Lane’s approval to liquidate its GBTC investments, currently estimated at $1.3 billion. The request for sanction from the bankruptcy tribunal was made by Genesis last week, and Judge Lane sanctioned the sale on Wednesday. Moreover, Genesis is authorized to dispose of its additional holdings in alernative Grayscale funds like the Ethereum Classic Trust.
Judge Lane stipulated that the disposal should be conducted gradually, in collaboration with a brokerage, adhering to a structured plan. The GBTC shares owned by Genesis are convertible into either fiat money or the cryptocurrency bitcoin (BTC). Since becoming a publicly traded spot bitcoin exchange-traded fund (ETF) on Jan. 11, GBTC has experienced significant withdrawals.
There’s growing apprehension within the crypto community regarding the potential market impact of Genesis’s GBTC sell-off. Since Jan. 12, GBTC has seen a depletion of 153,604.56 BTC, equivalent to $7.9 billion, from its assets. At current market rates, Genesis’s conversion of its stake to BTC today would result in the withdrawal of 25,251.40 BTC.
Source: Bitcoin
