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

Upcoming Events

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.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Unlocked by Template (7).png

Research

Union’s improvements upon Tendermint consensus through CometBLS, coupled with ZK proving through Galois, allow for a broadly scalable, cost efficient, and low latency IBC implementation that is feasibly scalable across every existing blockchain, virtual machine and runtime. The implementation offers modular crosschain interoperability without the need for trusted intermediaries.  

article-image

The drop gives buyers Adidas outfits for their in-game characters, but the game hasn’t fully released yet

article-image

In 1999, Daniel Bernstein fought for code to be protected, just like free speech

article-image

Sentora aims to create an ecosystem focused on institutional investors’ DeFi needs

article-image

Using Bitcoin as a model, Vitalik’s new priority for Ethereum is technical simplicity

article-image

Solana leaders privately told validators to upgrade their software