Has GBTC’s Selling Pressure Not Ended Yet? Genesis Files for Bankruptcy Court Approval to Sell $1.4 Billion GBTC.
As part of the bankruptcy proceedings, cryptocurrency lending institution Genesis has submitted a motion to the judge requesting approval to sell its holdings in Grayscale Trust assets, including nearly $1.4 billion worth of GBTC, as well as $200 million worth of ETHE and ETCG.
Genesis, a bankrupt cryptocurrency lending institution, has filed a new motion with the United States Bankruptcy Court for the Southern District of New York, seeking to sell approximately $1.6 billion worth of trust assets, including:
– Grayscale Bitcoin Trust Fund (GBTC): valued at approximately $1.4 billion
– Grayscale Ethereum Trust Fund (ETHE): valued at approximately $165 million
– Grayscale Ethereum Classic Trust Fund (ETCG): valued at approximately $38 million
Genesis has also proposed a motion to expedite the related deadlines in order to obtain results as soon as possible at the bankruptcy court hearing on February 8th.
According to previous analysis reports by Bloomberg, the largest “known” holder of GBTC is actually its parent company, DCG. It holds 35.94 million shares of GBTC, worth $1.27 billion. This data is not far from the information in the court documents mentioned above.
(Analysis report by Bloomberg: The impact of FTX and DCG dumping on GBTC)
FTX has actually completed its dumping, but the $1.3 billion assets held by the largest holder, DCG, have not yet been approved for sale. As of last week, GBTC has already seen outflows of $5.8 billion, and it appears that the dumping is not yet over.
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