Court Allows Genesis to Liquidate $1.3B of GBTC Shares

The bankruptcy court has granted permission for Genesis Global Holdco to sell approximately $1.3 billion worth of shares from Grayscale Bitcoin Trust (GBTC) in order to reimburse investors, according to a Zoom hearing held on February 14 in the United States District Court for the Southern District of New York.

According to court documents filed in February, Genesis Global Holdco reported holding around $1.6 billion worth of shares from not only GBTC but also investment firms Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG).

These share amounts equated to roughly 35 million GBTC shares and 11 million ETHE and ETCG shares, as noted in its bankruptcy filings.

However, Grayscale filed an objection on February 9, stating that the sales were subject to approval from the investment firm but that there were no plans to hinder the liquidation of trust assets by Genesis.

Following the US Securities and Exchange Commission (SEC)’s approval on January 10 for the conversion of GBTC to a Bitcoin exchange-traded fund, Genesis expects this to aid in the redemption of shares for cash.