Genesis-related Bitcoin sales are over

While Bitcoin spot ETFs have received investments worth billions of dollars, the sales of companies with shares in Grayscale, also known as GBTC, have been creating a significant sales pressure since January 11. While the massive sales of bankrupt companies such as FTX and Genesis have attracted attention so far, ETF analyst Eric Balchunas claimed that the Genesis sales have now come to an end.

“Genesis sales are either over or close to ending…”

Evaluating the inflows and outflows seen in Bitcoin spot ETFs over the last 2 weeks through the X account, Bloomberg ETF expert used the following statements:

“Especially behind the investments in the last 2 weeks were the strong purchases of the older (boomer) generation. This week’s increases were due to the decrease in GBTC sales. Because this week Genesis sales have either finished or reached the point where they are about to finish.”

As it is known, the FTX exchange, which entered the bankruptcy process in November 2022, also negatively affected some other crypto companies. Borrowers from the crypto loan company Genesis were unable to pay the money, leaving the company in a difficult situation.

Genesis also applied to the bankruptcy court in January 2023 and the company’s assets were frozen.

$3 billion Grayscale sale in two weeks

The court gave sales permission in February (2024) for GBTC shares worth $1.3 billion, which are some of these frozen assets. Grayscale company also sold Bitcoin in exchange for the GBTC shares sold by Genesis, and this created serious pressure on the price.

Grayscale company made a total of $2.9 billion in sales in the last 2 weeks of trading. Grayscale has made sales between $212 million and $350 million as of Monday, and this figure was $100 million yesterday, the lowest of the recent period.

Of course, it is not known how much of its sales belong to Genesis, but Balchunas claims that the figures are largely Genesis sales.