The United States District Court for the Southern District of New York has authorized Genesis Global Holdco to liquidate about $1.3 billion in Grayscale Bitcoin Trust (GBTC) shares. This decision aligns with Genesis’ initiatives to compensate investors and stems from prior filings indicating the holding company’s ownership of approximately $1.6 billion in shares spanning various Grayscale trusts.
Judge Approves Genegis’s Liquidation Plan
During a virtual hearing on February 14 conducted via Zoom, Judge Sean Lane approved an order allowing Genesis Global Holdco to sell a portion of its investments in Grayscale. February court filings revealed that Genesis held approximately 35 million GBTC shares, as well as 11 million shares in Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG). Grayscale filed a limited objection to the plan on February 9, stating that the sales were “subject to written approval” but did not aim to obstruct the liquidation process.
Read more: MicroStrategy Expands Bitcoin Holdings to $8.1 Billion with $37 Million Purchase in January
SEC’s Role and Genesis Settlement
The U.S. Securities and Exchange Commission (SEC) played a crucial role in this scenario. On January 10, the SEC approved the conversion of Grayscale’s GBTC to a spot Bitcoin exchange-traded fund (ETF) for listing and trading on U.S. exchanges. Genesis Global Holdco sees this approval as a facilitator for redeeming shares in cash. It’s worth noting that on January 31, Genesis reached a $21 million settlement with the SEC over alleged involvement in offering and selling unregistered securities through the Gemini Earn program.
Conclusion
The court’s approval for Genesis Global Holdco to liquidate $1.3 billion worth of Grayscale GBTC shares marks a significant step in the company’s efforts to address investor concerns. With regulatory approvals and settlements with the SEC, Genesis is navigating through legal complexities, signaling potential resolutions in the broader crypto industry. As the situation evolves, stakeholders will be closely monitoring the impact of these developments on the market and the future trajectory of Genesis Global Holdco.
