Analysts at digital asset management firm CoinShares believe that the fear surrounding the repayments of defunct crypto exchange Mt. Gox is exaggerated. Mt. Gox, once the world’s largest Bitcoin exchange, went bankrupt and lost most of its coins due to theft. However, the exchange has since recovered most of its coins and is in the process of repaying its former customers during a lengthy bankruptcy process, causing uncertainty in the market about potential sell pressure if it were to sell its BTC to redeem creditors.

In a new report, CoinShares suggests that many of the Mt. Gox creditors are likely to hold on to most of their coins to minimize their tax burden. This means that when selling does occur, it will likely be spread out over many crypto exchanges, giving buy-side liquidity ample chance to absorb the sell pressure.

CoinShares points out that creditors will receive around 15% of the Bitcoin they held at the time of the exchange’s collapse, and given Bitcoin’s significant increase in value since then, they are up roughly 13,600%. This could result in an exorbitant tax event if they decide to sell immediately, leading many creditors to either sell only a small portion of their holdings or hold onto them for the time being.

The report also highlights that Mt. Gox creditors have faced numerous offers from claims buyers for a USD payout, but many have not taken these offers. This suggests that there is no precise estimate of how many coins will be sold in the market following distribution.

The distributions will occur on a number of exchanges, including Bitstamp, Kraken, Bitbank, BitGo, SBI VC Trade, and others, at different dates throughout the month, softening the likelihood of large concurrent selling.

CoinShares believes that the potential sell pressure is more of a problem in theory than it will be in practice. As of the time of writing, Bitcoin is trading at $60,146.

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