Genesis Global Capital Can Sell $1.3B Stake in Grayscale’s Bitcoin Trust
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Genesis Global Capital has received approval to sell its $1.3 billion stake in Grayscale’s Bitcoin Trust (GBTC). The green light came from Judge Sean Lane after Genesis sought permission to sell its investments.
This move allows Genesis to convert its GBTC holdings, as well as other investments in Grayscale funds like the Ethereum Classic Trust, into cash. The bankruptcy tribunal gave the green light last week, and Judge Lane officially approved it on Wednesday.
Genesis Global Permitted to Liquidate $1.3 Billion in #Bitcoin Trust Shares https://t.co/T3Miqm3tfu
— Bitcoin.com News (@BTCTN) February 15, 2024
This decision paves the way for Genesis to proceed with its plans to sell off its holdings in these cryptocurrency investment vehicles.
Hence, Genesis Global Capital’s approval to sell $1.3 billion in cryptocurrency assets could influence market sentiment, potentially impacting prices as such large-scale sales can affect supply and demand dynamics.
Genesis’s Gradual GBTC Sell-Off Directive for Market Stability
Judge Lane instructed Genesis to sell its GBTC shares gradually through a brokerage, using a structured plan. The shares can be converted into either regular money or bitcoin (BTC). GBTC, now a publicly traded bitcoin ETF since Jan. 11, has experienced significant withdrawals.
This directive ensures a methodical and orderly process for selling Genesis’s GBTC holdings, considering market conditions and investor interest carefully. In simpler terms, Genesis has been told to sell its GBTC shares slowly through a broker, giving thought to market conditions and investor demand.
Genesis’s GBTC Sell-Off Sparks Market Volatility Concerns
The crypto community is increasingly worried about the effect of Genesis’s GBTC sell-off on the market. Since January 12, GBTC has lost 153,604.56 BTC, worth $7.9 billion. If Genesis were to convert its stake to BTC today, it would withdraw 25,251.40 BTC.
This significant withdrawal could have a noticeable impact on market dynamics. Investors are closely monitoring the situation amid concerns about potential market volatility stemming from the sell-off.
The news of Genesis’s GBTC sell-off raises concerns of increased market volatility, as the significant withdrawal of BTC could potentially disrupt market dynamics, prompting investors to closely monitor the situation.
