Genesis files a motion to sell $1,6 billion worth of Grayscale crypto trust shares
In question is exchange-traded products based on bitcoin, Ethereum, and Ethereum Classic
06.02.2024 - 07:36
193
2 min
0
What’s new? Bankrupt crypto broker Genesis has requested court approval to sell bitcoin, Ethereum, and Ethereum Classic stored in exchange-traded products from investment firm Grayscale, totaling more than $1,6 billion. Of that, $1,4 billion is placed in the Grayscale Bitcoin Trust (GBTC), which was converted into a spot exchange-traded fund (ETF) in January. Another $165 million is held in the Grayscale Ethereum Trust, and $38 million in the Grayscale Ethereum Classic Trust. Genesis and Grayscale are part of Barry Silbert’s Digital Currency Group (DCG) conglomerate.
What else is known? If the proposal is approved, bitcoin could once again face selling pressure. In January, bankrupt crypto exchange FTX sold 22 million GBTC shares worth more than $1 billion, coinciding with the asset’s plunge to $39 500.
As for Genesis, it transferred some GBTC shares to crypto exchange Gemini as collateral for the Gemini Earn joint revenue program. The broker wants to sell 31 million shares that were intended for the exchange but were never transferred to its accounts.
Launched in December 2020, Earn allowed Gemini customers to lend their Genesis cryptocurrencies at interest. Since the broker’s bankruptcy last January, more than 100 000 users have been unable to receive their assets and interest totaling more than $1 billion. Gemini is the largest creditor of Genesis.
Genesis owes another more than $3,5 billion to several entities, including market maker Cumberland and New Finance Income Fund, and investment firm VanEck.
Genesis previously entered into a settlement agreement with the US Securities and Exchange Commission (SEC) over its lawsuit alleging violations under the Earn program. The brokerage will pay a $21 million fine after settling debts owed to creditors. Gemini is also a defendant in this lawsuit.
Useful material?
Telegram 
Twitter Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Cryptocurrency rates
-
Bitcoin
$98 958
BTC
+1.87%
-
Ethereum
$3 376.47
ETH
+7.35%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.39
XRP
+24.05%
-
Dogecoin
$0.393881
DOGE
+2.08%
-
Cardano
$0.866833
ADA
+10.74%
-
Bitcoin Cash
$491.27
BCH
-5.59%
-
Polkadot
$6.14
DOT
+7.64%
-
Stellar XLM
$0.285025
XLM
+18.76%
-
Litecoin
$90.26
LTC
+0.2%