BTC Price Index and Live Chart – CoinDesk”>(BTC), ether <a data-position="autolink" href="http://coindesk.com/price/ethereum/" title="Ethereum Price

If the motion passes, it could lead to another large amount of selling pressure for bitcoin. In January, the bankrupt exchange FTX disposed of over $1 billion in GBTC. This coincided with a price drop from $49,000 to $39,000.

Grayscale Bitcoin Trust, which was a Grayscale Bitcoin Trust until recently (GBTC), has now been converted into a spot ETF. The filing also shows that it holds $165,000,000 in Grayscale Ethereum Trust as well as $38,000,000 in Grayscale Ethereum Classic Trust.

The filing states that Genesis transferred some of the GBTC as collateral to the cryptocurrency exchange Gemini as part of its Gemini Earn program. Genesis is seeking an additional 31,000,000 GBTC shares which were pledged but never transferred to Gemini, according to the filing.

Genesis and Grayscale were key components of Digital Currency Group’s crypto empire. This was hit by losses, controversies, and the collapse of prominent funds and exchanges in 2022. The domino effect caused Genesis to declare its bankruptcy last year.

Gemini is Genesis’ largest creditor. Gemini estimates that over 100,000 users of Genesis are affected by bankruptcy, and owe a total between $1 billion to $10 billion.

The lender owes an additional $3.5 billion in debt to its 50 largest creditors. These include the trading giant Cumberland as well as Mirana Finance, MoonAlpha Finance, and VanEck’s New Finance Income Fund.

Sheldon Reback is the editor.