Bankrupt cryptocurrency lender Genesis Global Capital has asked the U.S. Bankruptcy Court to allow the liquidation of approximately $1.4 billion worth of grey-scale Bitcoin Trust (GBTC), approximately $165 million worth of grey-scale Ethereum Trust (ETHE), and approximately $38 million worth of grey-scale Ethereum Classics Trust's (ETCG) shares, for a total of approximately $1.6 billion.
According to the filing, Genesis emphasizes the urgent need to obtain approval for the sale of the trust's assets before any potential volatility in the underlying assets price, which are Bitcoin, Ether, and Ether Classic. The company has also filed a separate motion to shorten the relevant deadlines so that the motion to sell can be heard at the Bankruptcy Court's next hearing on Thursday, 8 February. Genesis stated:
“The Debtors believe it would be beneficial to have the authority to sell and liquidate the Trust Assets to reduce any risk that fluctuations in price might have on the Debtors’ estates and to facilitate distributions to creditors.”
In addition, GBTC shares represent approximately 87% of the total portfolio of the three Genesis trusts. The ETHE represents approximately 10% of total holdings and ETHCG approximately 3%.
