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Post: Genesis Global Holdco to Liquidate $1.3 Billion in Grayscale Bitcoin Trust Shares: A Hot Take on the Bankruptcy Proceedings

Genesis Global Holdco to Liquidate $1.3 Billion in Grayscale Bitcoin Trust Shares: A Hot Take on the Bankruptcy Proceedings

Key Points:

  • Genesis Global Holdco plans to liquidate approximately $1.3 billion worth of shares of Grayscale Bitcoin Trust (GBTC) as part of its bankruptcy proceedings.
  • A bankruptcy judge from the United States District Court for the Southern District of New York approved the order to allow Genesis to sell off its investments in GBTC, Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
  • Genesis holds about 35 million GBTC shares and 11 million ETHE and ETCG shares based on its bankruptcy filings.
  • Grayscale has filed a limited objection to the plan, stating that the sales require written approval from the investment firm but will not delay or obstruct the liquidation of trust assets.

Genesis Global Holdco to Liquidate $1.3 Billion in Grayscale Bitcoin Trust Shares

A bankruptcy judge has granted Genesis Global Holdco permission to liquidate approximately $1.3 billion worth of shares in Grayscale Bitcoin Trust (GBTC) as part of its bankruptcy proceedings. The decision was made in a hearing held via Zoom on February 14. Genesis filed for bankruptcy in the United States District Court for the Southern District of New York.

Grayscale’s Limited Objection

Grayscale, the parent company of GBTC, has filed a limited objection to Genesis’ plan. Although the sales of the trust assets require written approval from Grayscale, the objection does not intend to hinder the liquidation process.

Hot Take

The approval to liquidate a significant amount of GBTC shares by Genesis Global Holdco is an interesting development in the bankruptcy proceedings. This move suggests that Genesis sees value in selling off its digital asset holdings to reimburse investors. It also indicates that there is confidence in the market for GBTC, which is one of the most popular cryptocurrency investment vehicles. It will be intriguing to see how this liquidation affects the cryptocurrency market and the value of GBTC moving forward.

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