Coinbase forecasts that funds from Genesis' GBTC sell-off would "remain within the crypto ecosystem," despite fears of it potentially impacting Bitcoin's price.
Cryptocurrency exchange Coinbase believes that the approval for bankrupt crypto lending firm Genesis to sell its shares in Grayscale Bitcoin Trust (GBTC) won't disrupt the crypto market. It argued that most of the funds will flow back into the crypto ecosystem, resulting in a neutral impact on the market.
Genesis was granted approval by a bankruptcy judge on Feb. 14 to liquidate around $1.3 billion worth of GBTC as part of its efforts to reimburse creditors.
However, following the approval for Grayscale Investments to convert GBTC into a spot Bitcoin exchange-traded fund (ETF) on Jan. 10, GBTC has experienced outflows exceeding $5 billion. There are concerns within the crypto industry that the recent approval for Genesis to also sell-off GBTC shares could lead to additional downward pressure on the price of Bitcoin (BTC).
