Genesis Cleared by Bankruptcy Court to Redeem GBTC Shares

Genesis Global Holdco LLC won bankruptcy court permission to start redeeming roughly 35 million Grayscale Bitcoin Trust shares worth more than $1.3 billion as the bankrupt crypto lender readies plans to compensate clients who lent it digital assets.

Judge Sean Lane said Wednesday he’d grant Genesis’ request to convert the shares into either Bitcoin or cash, a process the crypto lender said would be conducted over time with the help of a broker. Genesis also intends to sell more than 11 million shares in two Grayscale Ethereum Trusts worth more than $200 million, according to a Feb. 2 court filing.