Genesis Global Capital Seeks Approval for $1.6B Trust Asset Liquidation

Genesis Global Capital seeks urgent approval to liquidate $1.6 billion in Grayscale Bitcoin Trust, Ethereum Trust, and Ethereum Classic Trust shares, emphasizing dominance in GBTC holdings and navigating trends in cryptocurrency investor exodus.

  • Urgent Liquidation: Genesis requests approval to sell Grayscale Bitcoin Trust, Ethereum Trust, and Ethereum Classic Trust shares worth $1.6 billion in a bid to minimize risk and maximize creditor distribution.
  • GBTC Dominance: Approximately 87% of Genesis’ portfolio is in GBTC shares, valued at $1.38 billion.
  • Exodus Trends: Following the GBTC conversion to a spot Bitcoin ETF, there is a notable trend of investors selling their GBTC shares.

Urgent Trust Asset Liquidation Request

In a recent move, crypto lending firm Genesis Global Capital, currently navigating bankruptcy, has urgently sought permission from the United States Bankruptcy Court to liquidate shares in major trusts. Genesis aims to sell holdings in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), totaling a substantial $1.6 billion.

GBTC Holds the Reins: Genesis, with 87% of its portfolio in GBTC shares (worth $1.38 billion), emphasizes the need for swift approval to navigate potential fluctuations in cryptocurrency prices. The urgency is underscored by the aim to safeguard against adverse impacts on Genesis’ estates and to enhance funds available for distribution to creditors.

Exodus Trends in GBTC: Notably, since the recent conversion of GBTC to a spot Bitcoin ETF, there has been a significant exodus of investors selling their GBTC shares. However, Genesis asserts its commitment to maximizing the sale proceeds from these crypto assets.

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