Crypto Financial

Crypto Lender Genesis Requests to Sell $1.6B of Assets

Genesis stressed in a recent court filing the need to get permission to sell the trust assets as soon as possible in order to avoid any future price swings for the underlying assets, which are Ethereum Classic, Ethern, and Bitcoin.

Crypto Lender Genesis Requests to Sell $1.6B of Assets
Crypto Lender Genesis Requests to Sell $1.6B of Assets

The insolvent cryptocurrency lending company Genesis Global Capital has asked the US Bankruptcy Court for authorization to sell its $1.6 billion worth of shares in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).

Genesis stressed in a recent court filing the need to get permission to sell the trust assets as soon as possible in order to avoid any future price swings for the underlying assets, which are Ethereum Classic, Ethern, and Bitcoin.

The goal, according to Genesis, is to maximise the amount of money that may be given to creditors.

“The Debtors believe it would be beneficial to have the authority to sell and liquidate the Trust Assets to reduce any risk that fluctuations in price might have on the Debtors’ estates and to facilitate distributions to creditors.”

With a combined value of $1.38 billion, GBTC shares account for around 87% of Genesis' entire portfolio across the three trusts. 

ETHE represents nearly 10% of its entire assets, or $169 million, whereas ETHCG makes up approximately 3%, or $38 million.

The report states that as of September 2023, GBTC possessed around 3.2% of all Bitcoin in circulation. By December 2022, ETHE owned around 2.5% of all Ethereum in circulation, whereas ETCG controlled about 8.5% of all Ethereum Classic in circulation.

Genesis said that the recent conversion of GBTC to a spot Bitcoin exchange-traded fund, approved by the US Securities and Exchange Commission on January 10, now permits the redemption of shares in cash through its redemption programme.

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