- Coinbase highlighted in its report that Genesis has received court approval to sell GBTC shares.
- Experts in the exchange industry remain confident that this move will not heavily impact the market.
According to a report from Coinbase, the sale of GBTC shares by crypto lender Genesis, from Grayscale Investments, will not have a significant impact on the market.
The news of Genesis receiving court approval to sell this portfolio was announced on February 14, 2024. This portfolio consists of 35 million shares with an estimated value of $1.3 billion.
The sale of such a large number of shares could potentially impact both the fund and Bitcoin, exerting selling pressure. However, Coinbase believes that the majority of the capital will stay within the ecosystem:
“We anticipate that most of this capital will remain within the ecosystem, resulting in a neutral effect on the market.”
According to court filings, Genesis has the option to convert the shares into an underlying asset or directly sell the securities. In either scenario, Coinbase experts anticipate a minimal effect, as the spot Bitcoin ETF segment and the overall crypto market are experiencing growth.
The next court hearing regarding this matter is scheduled for February 26, 2024.
Bitcoin BTCIt’s worth noting that as of February 15, 2024, the spot Bitcoin ETF segment has seen a 15-day consecutive inflow of capital. Meanwhile, the outflow from GBTC continues and has already surpassed $7 billion.