A bankruptcy judge has granted Genesis Global Holdco permission to liquidate approximately $1.3 billion worth of Grayscale Bitcoin Trust (GBTC) shares as part of efforts to reimburse investors.
During a hearing on February 14 at the Southern District Court of New York conducted via Zoom, Judge Sean Lane signed an order allowing Genesis to sell off a portion of its investment in GBTC. Court documents from February show Genesis holding shares of GBTC, Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG) worth around $1.6 billion.
Genesis stated they hold about 35 million GBTC shares and 11 million ETHE and ETCG shares in their bankruptcy filings.
On January 10, the U.S. Securities and Exchange Commission (SEC) approved the conversion of Grayscale’s GBTC to a spot Bitcoin ETF to be listed and traded on U.S. exchanges, along with funds from 10 other asset managers. Genesis noted that SEC approval would facilitate their exit from GBTC shares.
On January 31, Genesis announced a $21 million settlement with the SEC regarding the sale of unregistered securities through the Gemini Earn program.