- Coinbase mentioned the court authorization for Genesis to sell GBTC shares in its report.
- Experts of the exchange are confident that this realization will not have a serious impact on the market.
The sale of cryptocurrency lender Genesis shares of the GBTC fund from Grayscale Investments will not have a serious impact on the market. This is stated in the report of the exchange Coinbase.
Information that Genesis received court approval for the sale of this portfolio appeared on February 14, 2024. We are talking about a package of 35 million shares, the estimated value of which is $1.3 billion.
The realization of such a shareholding could have an impact on the position of both the fund itself and bitcoin, increasing selling pressure. However, Coinbase believes that the funds will not leave the market:
“We believe most of this capital will remain in the ecosystem. This will ultimately result in a market neutral effect.”
According to court filings, Genesis can convert the shares into an underlying asset or sell the securities directly. In both cases, Coinbase experts predict a negligible effect, as the spot bitcoin-ETF segment and the crypto market as a whole are booming.
The next hearing on this issue is scheduled for February 26, 2024.
As a reminder, as of the close of trading on February 15, 2024, the spot bitcoin-ETF segment has seen capital inflows for 15 consecutive days. The outflow from GBTC continues, which has already exceeded $7 billion.
