Grayscale Is Being Sued By Hedge Fund Fir Tree For Details On GBTC
According to a Bloomberg article, hedge fund Fir Tree is suing cryptocurrency investment company Grayscale to get information on its flagship. Grayscale Bitcoin Trust (GBTC) in order to look into any mismanagement and conflicts of interest.
With $10.7 billion in assets, the trust is the biggest publicly traded crypto fund in the world. Fir Tree wants Grayscale to resume redemptions and reduce costs for the trust. It enables American investors to track Bitcoin’s price changes without actually purchasing the asset.
The stablecoin. Tether (USDT) was the target of a significant short wager by Fir Tree early this year. The case claims that shareholder-unfriendly activities have damaged Grayscale stockholders.
As a result of the significant decrease in the price of Bitcoin and the failure of several well-known cryptocurrency companies, including FTX, GBTC is trading at virtually a record 43% discount to the price of the underlying Bitcoin in the trust and has lost almost 75% of its value this year.
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