Genesis completes sale of GBTC and Grayscale shares to ETCG and ETHE
Date: 2024-04-08 Author: Gabriel Deangelo Categories: BUSINESS
Genesis Global Trading completed the sale of over 35 million shares of the Grayscale Investments (GBTC) Converted Spot Bitcoin ETF and also sold over 11 million shares of the Grayscale Ethereum Trust (ETCG) and Grayscale Ethereum Classic Trust (ETHE).
Asset valuation and bitcoin acquisition
At the time of the filing, lawyers estimated Genesis' assets at $1.6 billion, most of which were GBTC shares. Upon completion of the transaction on April 2, 2024, the company acquired 32,041 BTC, which was distributed between two addresses, according to analysts at Arkham Intelligence.
Implications for Gemini Earn participants
The cryptocurrency raised from the share sale is expected to be distributed to approximately 232,000 participants in the Gemini Earn investment program who were affected by the Genesis bankruptcy. These clients were expecting returns of up to 13%, and their funds were frozen as a result of the market downturn and the collapse of FTX.
In addition, Genesis entered into an agreement with US authorities, settling a lawsuit filed by a top New York official.
Although Coinbase previously said that the sale of GBTC fund shares by crypto lender Genesis would not have a major impact on the market, many stakeholders continue to monitor developments.
