Genesis is seeking approval to vend holdings of Bitcoin and Ether Trust amounting to $1.6 billion.

On Friday, the insolvent cryptocurrency lender Genesis filed a motion in the U.S. seeking approval from a judge for the sale of Grayscale's trust products, encompassing over $1.6 billion in bitcoin ( BTC ), ether (ETH), and Ethereum Classic (ETC). If the motion receives approval, it could introduce a substantial amount of selling pressure on the bitcoin market, reminiscent of the January scenario where FTX, an insolvent exchange, liquidated over $1 billion in GBTC holdings, coinciding with a drop in price from $49,000 to $39,000.

Gemini, Genesis' primary creditor, estimates that the bankruptcy affects more than 100,000 of its users, collectively owed between $1 billion and $10 billion. Additionally, Genesis owes over $3.5 billion to its top 50 creditors, including entities such as trading giant Cumberland, Mirana, MoonAlpha Finance, and VanEck's New Finance Income Fund.

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