Genesis has been granted court permission to sell over $1.3 billion GBTC

According to a report by Bloomberg, cryptocurrency lending institution Genesis has been granted permission by the bankruptcy court to sell its holdings in Grayscale Trust assets, including over $1.3 billion worth of GBTC, as well as $200 million worth of ETHE and ETCG.

Selling 35 Million Shares of GBTC, Unloading Pressure Unfinished?

According to a previous analysis report by Bloomberg, the largest "known" holder of GBTC is actually its parent company DCG. They own 35.94 million shares of GBTC, valued at $1.27 billion, which is not far from the data in the court documents mentioned above.

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Now that these shares are being released on the market, will it once again cause selling pressure on Bitcoin? According to the latest statistics, the Bitcoin ETF saw a high net inflow of $631 million the previous day, continuing a streak of over $400 million in net inflows since 2/8.

The value of Bitcoin transferred from Grayscale GBTC to Coinbase on 2/15 was only $105 million, a significant difference from the early days of ETF launch where daily outflows were in the hundreds of millions.

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Genesis also stated that they own approximately 35 million shares of GBTC, which will be gradually sold with the help of brokers. In practice, they will sell in batches or seek suitable buyers off-exchange at agreed prices to minimize market impact.

Parent Company DCG Expresses Concerns, Judge States Genesis Operates Independently

Genesis' parent company DCG had attempted to delay the proposed sale, but DCG opposed the payment plan proposed by Genesis, not the sale of the related trust funds.

Responding to the rising coin price, Genesis sought to pay off customer funds, to which DCG cried foul of "violating U.S. bankruptcy laws."

DCG lawyer Jeffrey Saferstein expressed concerns that Grayscale's stocks might be sold off too quickly, driving down market prices and affecting potential recoveries for Genesis' creditors. The parent company is also seeking consulting rights over the Grayscale trust funds.

However, Judge Sean Lane stated that under Chapter 11 of the Bankruptcy Code, independently operated Genesis has the right to decide how to sell its assets. Genesis also indicated that the sales will be conducted strategically with brokers, a plan that has received wide support from Genesis' creditors.