- Coinbase predicts Genesis’ GBTC liquidation to have a neutral market impact.
- Genesis approved to sell $1.3 billion GBTC shares, aims to pay creditors.
- Concerns over GBTC outflows and Bitcoin price pressure addressed by Coinbase.
Coinbase, a major player in the cryptocurrency exchange world, recently shared its perspective on the financial moves of Genesis, a crypto lending company facing bankruptcy. Genesis got the green light from a court to sell a large chunk of its Bitcoin trust shares, worth about $1.3 billion, to help pay back the money it owes.
The Impact on the Market
Despite worries that this big sale could lower Bitcoin’s price, Coinbase suggests there’s no need to panic. According to their post, they believe the money from the sales will probably stay within the crypto world, which means things might not change much for the average crypto fan.
Looking Ahead
With a big meeting set for February 26 to confirm the plan, all eyes are on what Genesis will do with its shares in the Bitcoin trust and its holdings in Ethereum and Ethereum Classic trusts. At the same time, the interest in Bitcoin ETFs seems to be growing, which could balance out any sell-offs from Genesis.
Amid these complex financial maneuvers, experts like Sam Callaghan from Swan Bitcoin are closely watching. They’re trying to figure out what will happen next, especially with the creditors who are owed money. The big question is whether they’ll hold onto their Bitcoin or decide to sell.
