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Has the selling pressure of GBTC not ended yet? Genesis applies to bankruptcy court to sell $1.4 billion of GBTC.

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Has the selling pressure of GBTC not ended yet? Genesis applies to bankruptcy court to sell $1.4 billion of GBTC.

As part of the bankruptcy proceedings, cryptocurrency lending institution Genesis has filed a motion to seek court approval to sell its holdings of Grayscale Trust assets, including nearly $1.4 billion worth of GBTC, as well as $200 million worth of ETHE and ETCG.

Genesis Still Holds $1.4 Billion in GBTC

The bankrupt cryptocurrency lending institution Genesis 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 in trust assets, including:

  • Grayscale Bitcoin Trust Fund (GBTC): valued at around $1.4 billion
  • Grayscale Ethereum Trust Fund (ETHE): valued at around $165 million
  • Grayscale Ethereum Classic Trust Fund (ETCG): valued at around $38 million

Genesis has also proposed a motion to shorten the relevant deadlines to expedite the outcome, which will be discussed at the bankruptcy court hearing on February 8.

Is the GBTC Sell-Off Not Over Yet?

According to a previous analysis report by Bloomberg, the largest "known" holder of GBTC is actually its parent company DCG. It holds 35.94 million shares of GBTC, valued at $1.27 billion, which aligns closely with the data in the court documents mentioned above.

Bloomberg's analysis on the impact of FTX and DCG dumping on GBTC

While FTX has already completed its dumping, the $1.3 billion assets held by the largest holder DCG are still pending approval for sale. As of last Friday, GBTC has seen outflows of $5.8 billion, indicating that the sell-off may not be over yet!