The bankrupt crypto lender Genesis has filed a request with a US judge for permission to sell an astonishing $1.6 billion in crypto assets.
Market participants anticipate how Bitcoin’s price might respond if Genesis receives authorization for the sell-off.
Genesis to Sell $1.60 Billion in Crypto
According to the court filing, the proposed sale includes significant holdings in Bitcoin (BTC), Ethereum (ETH), and Ethereum Classic (ETC). These assets are currently held in Grayscale’s Trust products.
This move follows FTX’s liquidation of over $1 billion in GBTC holdings, which led to a sharp decline in Bitcoin prices.
Genesis holds most of its assets, nearly $1.40 billion, in the Grayscale Bitcoin Trust (GBTC), now a spot Bitcoin exchange-traded fund (ETF). The rest are in Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust, worth $169 million and $38 million, respectively. The crypto lender plans to liquidate these assets to support in-kind distributions to creditors.
“Because the Debtors intend to make in-kind distributions to creditors to the maximum extent possible (and to make cash distributions where in-kind distributions are not possible), having flexibility to monetize the Trust Assets and to convert such amounts to the underlying asset will be more efficient and economically beneficial to the Debtors and their estates,” the court filing reads.
| Trusts |
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Author: Harsh Notariya
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