Genesis to sell approximately 200 billion yen worth of Bitcoin ETF, plans for gradual liquidation
Planned sale in stages
On the 14th, a US bankruptcy court approved the sale of approximately 35 million GBTC shares of Grayscale, worth more than 195 billion yen, by Genesis, a bankrupt crypto lending company. Bloomberg reported.
Selling pressure is also a concern, and Genesis said the sale process will be carried out over time with the help of brokers.
According to a Feb. 2 court filing, Genesis also plans to sell more than 11 million shares of Grayscale Ethereum Trust (ETHE), worth more than 30 billion yen.
Digital Currency Group (DCG), the parent company of Genesis, is concerned that if Grayscale shares are sold too quickly and the price falls, the amount of assets that can be recovered by Genesis creditors could be reduced. was expressed.
In response, Bankruptcy Court Judge Sean Lane said the stock sales would be done strategically with the help of brokers. He also said that because Genesis and his creditors have deep expertise in cryptocurrencies, they should be able to sell their shares at the highest possible price.
Judge Lane said the sale must be carried out in stages according to a structured plan. The proposed sale is widely supported by Genesis creditors.
Genesis allows you to exchange the GBTC shares you own into legal currency or the crypto asset (virtual currency) Bitcoin (BTC).
What is GBTC?
Originally, it was a “Bitcoin investment trust” provided by Grayscale in the US. When the SEC approved the listing of multiple physical ETFs last month, it also allowed GBTC to be converted into a physical ETF.
Virtual currency glossary
connection:
Bitcoin rises above $50,000, bullish trend becomes clearer
Outflow from GBTC
Since January 12, 153,604.56 BTC (equivalent to 1.2 trillion yen) has been outflowed from Grayscale’s Grayscale Bitcoin Trust (GBTC).
By way of background, GBTC has been trading at a negative premium for the past few years. This is said to be due to the fact that operators withdrew from GBTC at a time when GBTC was converted to an ETF and the discount became virtually zero.
Another factor may be that while Bitcoin spot ETFs offered by competitors have relatively low fees at 0.2% to 0.9%, GBTC has higher fees at 1.5%.
connection:
Bitcoin ETF, the impact of capital outflows from GBTC on the market – Bitfinex Alpha
On the other hand, according to an analysis by HODL15Capital, the Bitcoin spot ETF excluding GBTC has purchased a total of 216,309 BTC (equivalent to 1.5 trillion yen) by the 9th.
#Bitcoin could reach $112K this year driven by ETF inflows, worst-case $55K.https://t.co/HrkV3TU8Ul pic.twitter.com/jBn6HWpt9b
— Ki Young Ju (@ki_young_ju) February 11, 2024
Ki Young Ju, CEO of data analytics company CryptoQuant, opined that depending on the pace of inflows into physical ETFs, Bitcoin could reach up to $112,000 (approximately 16.8 million yen) by the end of this year.
connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
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