Genesis wants to sell $1.3B GBTC

A hearing on the motion will take place on Thursday, Feb. 8

article-image

Genesis and Adobe modified by Blockworks

share

Bankrupt lender Genesis wants to offload around $1.3 billion of Grayscale’s bitcoin ETF GBTC.

In a filing on Friday, the Genesis debtors asked to sell shares of GBTC. If the court grants the motion, then Genesis could also sell its shares in Grayscale’s Ethereum Trust (ETHE) and Grayscale’s Ethereum Classic Trust (ETCG).

Genesis owns over 35 million shares of GBTC, 8 million shares of ETHE and nearly $3 million of ETCG. Based on the share prices of GBTC as of Jan. 30, the sales could fetch nearly $1.4 billion. However, the price of GBTC has fallen slightly from the closing price of $38.50 at the end of January. 

At the time of publication, GBTC was trading around $38 a share. 

Read more: Bitcoin ETF Tracker

In total, if the motion is approved, Genesis will sell nearly $1.6 billion in shares across the ETF and the two trusts.

In January, the FTX estate offloaded nearly $1 billion in GBTC shares, leading to large outflows for the bitcoin ETF — and the ETFs as a group.

CoinShares data showed that bitcoin ETFs recorded inflows of over $700 million last week, which outpaced the outflows.

GBTC has seen billions in outflows following its conversion to an ETF.

The court will hear the motion at a hearing on Thursday, Feb. 8 due to a separate filing that seeks to shorten the deadlines.

The bankrupt lender also wants to claim another 30 million GBTC shares that were pledged to Gemini but never transferred, according to the filing. 

“The motion also seeks authority for Gemini to monetize the Initial Collateral (30,905,782 shares of GBTC) it holds for the benefit of Earn users,” the Gemini website said

Last week, Genesis settled with the Securities and Exchange Commission. The settlement could see the bankrupt lender pay $21 million to the regulator pending on creditor repayment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

As the shutdown enters its second week, sources say the Senate Banking Committee looks to move ahead with a market structure bill markup

article-image

The collaboration expands Ripple’s Middle East footprint, supporting Bahrain’s blockchain adoption and future rollout of Ripple USD

by Blockworks /
article-image

The medical device firm will manage its $400 million Solana holdings using Coinbase Prime infrastructure to bolster its digital asset strategy

by Blockworks /
article-image

The deal gives PayPay a 40% stake in Binance Japan, linking digital assets with Japan’s largest mobile payment network

by Blockworks /
article-image

Citigroup’s venture arm backs BVNK to expand stablecoin payments infrastructure amid growing US regulatory clarity

by Blockworks /
article-image

The partnership integrates Deutsche Bank’s payment rails with Bullish’s regulated exchange, streamlining fiat operations for institutional traders

by Blockworks /