Genesis Global Holdco, holding approximately $1.6 billion in shares of Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), has been granted approval by a bankruptcy judge to liquidate about $1.3 billion worth of GBTC shares. This move is part of the company’s strategy to reimburse investors.
During a virtual hearing on Feb. 14th in the United States District Court for the Southern District of New York, Judge Sean Lane endorsed an order permitting Genesis to sell a portion of its investments from Grayscale. The filings from February indicated that Genesis possessed around 35 million GBTC shares, along with 11 million ETHE and ETCG shares, as disclosed in its bankruptcy filings.
Despite Grayscale filing a limited objection to the liquidation plan on Feb. 9, citing the need for written approval, it clarified that it didn’t aim to obstruct or delay its sale or transfer of trust assets.
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![Genesis filling](https://i0.wp.com/nosisnews.com/wp-content/uploads/2024/02/image-88.png?resize=1000%2C875&ssl=1)
The U.S. Securities and Exchange Commission (SEC) approved the conversion of Grayscale’s GBTC into a spot Bitcoin exchange-traded fund (ETF) on Jan. 10. This approval, along with those for 10 other asset managers, is expected to simplify the redemption of shares in cash, as noted
On Jan. 31, they reached a $21 million settlement with the SEC over its alleged involvement in offering and selling unregistered securities through the Gemini Earn program. It’s essential to distinguish Genesis Global Holdco from Genesis Global Trading, which faced regulatory action from the New York Department of Financial Services in January. The two entities are separate entities despite the similarity in names.