Genesis Global Capital Seeks Approval to Liquidate Crypto Trust Assets
Genesis Global Capital, a bankrupt company, has submitted a petition to the bankruptcy court seeking permission to sell its holdings in Grayscale’s Bitcoin Trust, Ethereum Trust, and Ethereum Classic Trust. The assets, valued at around $1.59 billion, would be converted into cash to mitigate potential risks associated with price volatility and allocate funds to creditors, according to Genesis. The proposal has received consent from the bankruptcy court’s committee, the ad hoc group, and Gemini. Genesis is also required to obtain approval from Grayscale before proceeding with the sale, transfer, or redemption of the shares.
GBTC Outflows Prompt Genesis to Consider Selling Trust Assets
In recent weeks, the GBTC has seen outflows that resulted in a decrease in its bitcoin holdings and assets under management (AUM). The trust’s bitcoin holdings dropped from 617,079.99 BTC to 478,337.43 BTC, while its AUM decreased from $26.93 billion to an estimated $20.53 billion. Genesis’ decision to sell its trust assets follows its settlement with the SEC, where it was required to pay $21 million. Gemini, on its website, expressed satisfaction with Genesis’ court filing, referring to it as an important step forward following the approval of GBTC as an exchange-traded product (ETP).
Hot Take: Genesis Takes Steps to Address Financial Issues
Genesis Global Capital is making efforts to address its financial issues by seeking court approval to liquidate its crypto trust assets. With the consent of relevant parties, Genesis plans to sell its holdings in Grayscale’s Bitcoin Trust, Ethereum Trust, and Ethereum Classic Trust, which are estimated to be worth $1.59 billion. This move aims to reduce the potential risks associated with price volatility and allocate funds to creditors. As Genesis deals with recent GBTC outflows and a decrease in AUM, this strategic decision is seen as an important development following the SEC settlement.
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