Home Business Genesis plans multi-billion dollar Bitcoin ETF sales, pushing down BTC price

Genesis plans multi-billion dollar Bitcoin ETF sales, pushing down BTC price

Genesis plans multi-billion dollar Bitcoin ETF sales, pushing down BTC price

Bankrupt crypto lending firm Genesis Global Capital wants to sell a large amount of shares in Grayscale Investments’ well-known Bitcoin (BTC) and Ethereum (ETH) funds.

The lending company, part of Digital Currency Group (DCG), has applied to the US Bankruptcy Court for permission to sell assets worth around $1.6 billion.

$1.6 billion from Grayscale Bitcoin and Ethereum funds

These are primarily shares in the Grayscale Bitcoin Trust (GBTC), the largest Bitcoin fund in the world, which was converted into one a few weeks ago exchange traded fund (ETF) or exchange traded fund.

GBTC shares represent approximately 87% of the total assets that Genesis plans to sell. The remaining shares are held by the Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) funds.

Grayscale wants to convert the ETHE fund into an ETF like GBTC. It has already submitted a corresponding application to the US Securities and Exchange Commission (SEC).

Genesis wants to sell as quickly as possible to avoid price fluctuations

Genesis wants to sell the shares to maximize the resources it has to repay its creditors.

The insolvent crypto lending company is therefore also demanding that certain deadlines be shortened. She wants the request to sell the shares to be heard at the next hearing in the bankruptcy case on February 8th.

Genesis wants to liquidate the shares as quickly as possible before possible price fluctuations can affect the value:

“The Debtors believe that it would be useful to have the power to sell and liquidate the trust assets to reduce the risk that price fluctuations could have on the Debtors’ estates and to facilitate distributions to creditors.”

Genesis’ plan could come at a sensitive time. Since Bitcoin ETF approval on January 10, Grayscale’s GBTC fund has seen huge outflows, putting pressure on Bitcoin prices.

Collapsed crypto exchange FTX also recently sold shares of the GBTC fund worth nearly $1 billion. This outflow from Genesis could put more pressure on the price.

Genesis recently reached an agreement with the SEC. It must pay a fine of up to $21 million to the SEC.

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