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Genesis seeks approval to sell $1.6B of trust assets

Global Capital has requested a United States Bankruptcy Court for permission to liquidate shares in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG), totaling approximately $1.6 billion.

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Global Capital has requested a United States Bankruptcy Court for permission to liquidate shares in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG), totaling approximately $1.6 billion.

In a recent court filing, Genesis emphasized the urgency of obtaining approval to sell the trust assets ahead of any potential fluctuations in the prices of the underlying assets, which are Bitcoin, Ether and Ethereum Classic. Genesis stated that the aim is to maximize the funds available for distribution to creditors.

GBTC shares make up approximately 87% of Genesis’ total portfolio across the three trusts, with a value of $1.38 billion. Meanwhile, ETHE equates to roughly 10% of its total holdings, amounting to approximately $169 million, with ETHCG comprising about 3%, totaling $38 million.

According to the filing, as of September 2023, GBTC held about 3.2% of all circulating Bitcoin. In December 2022, ETHE had approximately 2.5% of all circulating Ethereum, and ETCG held roughly 8.5% of all circulating Ethereum Classic.

Genesis highlighted that following approval from the United States Securities and Exchange Commission on Jan. 10, the recent conversion of GBTC to a spot Bitcoin exchange-traded fund now allows for the redemption of shares in cash through its redemption program.

However, it noted that the ETH trusts do not have a redemption program and, therefore, need written consent from the sponsor to sell or dispose of the shares. Genesis requested that the written approval be waived.

On Jan. 22, bankrupt cryptocurrency exchange FTX sold 22 million GBTC shares, valued at nearly $1 billion, completely liquidating all of its holdings.

However, Genesis declared that it intends to maximize the sale proceeds from the crypto assets.

Both the Debtors and Gemini shall, on a good faith basis, use reasonable best efforts to maximize the market price of any Trust Assets or Initial GBTC Shares and the proceeds received from any sale thereof or any redemption thereof, the filing stated.

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7-Eleven South Korea to accept CBDC payments in national pilot program

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7-Eleven is set to participate in the testing phase of a central bank digital currency (CBDC) initiative, running from April to June. The retail giant’s involvement highlights the growing push for digital currency integration in everyday transactions.

The pilot program will assess the feasibility of CBDC payments at 7-Eleven stores, allowing customers to make purchases using the digital currency. The initiative is part of a broader effort to explore the real-world application of CBDCs in retail environments, potentially shaping future payment systems.

As central banks worldwide accelerate their digital currency research, private sector collaboration is seen as crucial for widespread adoption. If successful, 7-Eleven’s participation could pave the way for broader CBDC usage across retail and commercial sectors.

The outcome of the testing phase will provide valuable insights into consumer adoption, transaction efficiency, and potential regulatory considerations, influencing how CBDCs are integrated into mainstream financial systems.

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SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

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The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have agreed to pause legal proceedings as both sides explore a potential resolution to their ongoing lawsuit. The move signals a possible settlement in the high-profile case, which centers around Gemini’s now-defunct Earn program.

The SEC initially sued Gemini, alleging that the Earn program—designed to offer users yield on crypto deposits—operated as an unregistered securities offering. Gemini has pushed back against the claims, arguing that its operations complied with regulatory standards.

By pausing litigation, both parties may be looking for a compromise that could set a precedent for crypto lending products in the U.S. A settlement could also provide regulatory clarity for similar platforms navigating SEC scrutiny.

While the outcome remains uncertain, the crypto industry is closely watching the case, as its resolution could impact future enforcement actions and the broader regulatory approach toward digital asset lending services.

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GameStop finishes $1.5B raise to add Bitcoin to its balance sheet

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GameStop has successfully completed a debt offering, raising capital that may be used to acquire Bitcoin, signaling the company’s deeper foray into digital assets. The move aligns with its broader strategy to diversify beyond traditional retail operations and into emerging financial technologies.

While GameStop has not confirmed the exact allocation of the funds, market speculation suggests that a portion could be used to buy Bitcoin, following in the footsteps of companies like MicroStrategy. The potential investment would reinforce GameStop’s ongoing pivot toward blockchain and digital assets, an effort that began with its NFT marketplace and crypto-related initiatives.

Analysts see this development as part of a growing trend of corporations exploring Bitcoin as a reserve asset amid concerns over inflation and monetary policy. If GameStop proceeds with the acquisition, it could further validate Bitcoin’s role as a strategic investment for publicly traded companies.

The company’s board will ultimately decide how the newly raised capital is deployed. Investors and the broader crypto market are watching closely for any official announcements regarding GameStop’s Bitcoin strategy.

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