Genesis has completed selling its GBTC stake worth over $2 billion

Genesis has finished selling its GBTC shares

End of selling pressure on GBTC, Grayscale’s Bitcoin ETF? According to Bloomberg Law, bankrupt Genesis has reportedly finished selling its stake in GBTC, which is estimated to be worth more than $2 billion..

Explanation that Genesis would not exchange its GBTC shares for dollars, but against Bitcoin. And this, to participate in the repayment of its injured customers, whose loss is estimated at 3.4 billion dollars. Of that total, Genesis owes about $765 million to Gemini under the “Gemini Get” offer.

According to data from Arkham Intelligence, the GBTC sold by Genesis, equivalent to more than 32,000 Bitcoins, would have been used in the past 3 weeks.

Genesis GBTC Redemption Wallets are now in Arkham

Genesis Trading has redeemed over 32,000 BTC ($2.1B) worth of GBTC shares over the past 3 weeks, as part of their ongoing bankruptcy process.

The redeemed BTC has been sent to two separate Bitcoin wallets, which are now written in Arkham:… pic.twitter.com/Ix1BsvzSs1

– Arkham (@ArkhamIntel) April 5, 2024

As part of its bankruptcy proceedings, Genesis had received approval to sell about 36 million of its GBTC shares in February last yearwith shares in 2 Ethereum deposits also provided by Grayscale.

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Although this news means that the selling pressure on GBTC will now be reduced, the latter, however, finds itself directed at Bitcoinsince Genesis customers will be compensated in BTC later.

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Fewer sales coming for Grayscale’s GBTC?

As we write these lines, Grayscale’s GBTC is worth about $21.8 billion, or 1.64% of the Bitcoin supply.. By comparison, when it was launched on the ETF market in January last year alongside giants like BlackRock or Fidelity, Grayscale held more than $28 billion in BTC following its fiduciary conversion.

But since its launch, GBTC has experienced massive sales. Sometimes for economic reasons, as GBTC is currently the most expensive fee-paying ETF in this market segmentsometimes because investors who have placed themselves in the old trust want to take their profits from the increase in the price of Bitcoin.

As we see below, if the Genesis sales occurred in the last 3 weeks, then the termination of the sales should have little effect. Indeed since its launch, Grayscale’s GBTC had only days with greater output than its input.

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In contrast, BlackRock and Fidelity, its 2 main competitors in this market segment, continue to see demand pouring into their Bitcoin ETFs, i.e. IBIT and FBTC. BlackRock currently has $17.9 billion worth of BTC for it, and Fidelity $10.2 billion. Unlike Grayscale, the latter started their operations last January from scratch.

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Source: Bloomberg Law