Genesis Global Capital is seeking to sell $1.6 billion in trust assets amid cryptocurrency market volatility.

The bulk of the assets for sale are Grayscale Bitcoin Trust shares, valued at $1.4 billion.

The sale represents a significant portion of Bitcoin's circulating supply, at 3.2%.

Genesis' move includes liquidation of assets tied to Ether and Ethereum Classic to boost liquidity and pay creditors.

An expedited court proceeding is requested to align with a Feb. 8 hearing.

The market impact of the sale could be considerable, following in the footsteps of FTX's previous liquidation of GBTC shares.

Genesis' GBTC shares are 87% of its total trust holdings, with ETHE and ETCG trusts making up the remaining 13%.