Will Bitcoin Be Impacted as Genesis Plans to Sell $1.3 Billion GBTC Stake?

Genesis Global Holdco LLC, a subsidiary of Digital Currency Group (DCG), has received approval from a US bankruptcy court to liquidate around 35 million shares in Grayscale’s GBTC fund, with a value of $1.3 billion. The court has also given Genesis the option to convert these shares into Bitcoin or cash. Despite objections from DCG, the court approved the transaction. Genesis plans to sell over 11 million shares from two Grayscale Ethereum Trusts, totaling over $200 million. This move comes as Genesis settles a lawsuit with the Securities and Exchange Commission (SEC), agreeing to a $21 million fine. The sale of GBTC shares could potentially impact the cryptocurrency market, specifically Bitcoin’s value, with some traders eyeing the $64,000 level in the coming weeks. Analysts caution that Genesis’ sale may exert downward pressure on BTC’s price, creating an opportunity for altcoins to rise. The broader cryptocurrency ecosystem is closely watching the ripple effect of these developments.