Bitcoin News: Genesis Authorized to Sell GBTC Shares Worth Over $1.3 Billion
Genesis Global Holdco LLC, a cryptocurrency lender that went bankrupt after the failure of FTX, has received authorization from the bankruptcy court to sell approximately 35 million shares of Grayscale Bitcoin Trust (GBTC) for a total value of over $1.3 billion. The company plans to use the proceeds from the sale to compensate its creditors, including former clients who lent digital assets.
Genesis Sale and Judge’s Decision
Judge Sean Lane has granted Genesis’ request to sell GBTC shares, with the sale being conducted over time through a broker. In addition to the 35 million GBTC shares, Genesis will also sell over 11 million shares of the Grayscale Ethereum Trust for an additional value of over $200 million.
Impact on Bitcoin Price
The sale of Genesis’ GBTC shares is unlikely to have a significant impact on the price of Bitcoin. The Grayscale Bitcoin Trust has already liquidated a significant portion of its BTC holdings since becoming an ETF in January. If all 35 million Genesis shares were withdrawn from the market, it would require the liquidation of an additional 31,000 BTC. However, considering that the sale will be conducted gradually, any impact on Bitcoin’s price is expected to be minimal and temporary.
Role of Other ETFs
The rise in Bitcoin’s price can be attributed to the activity of other ETFs in the market. BlackRock’s ETF (IBIT) and Fidelity’s ETF have purchased and withdrawn more BTC from the market than GBTC has liquidated. Additionally, two new Bitcoin ETFs by Ark and Bitwise have made significant purchases. These combined activities by various ETFs have contributed to the price surge of Bitcoin in recent weeks.
By
By
By
By