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.

Fir Tree intends to use the data to pressure Grayscale to rectify the significant discount it trades at in comparison to the Bitcoin it owns by reducing fees and resuming redemptions.

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.

The sister company of Grayscale, Genesis, stopped accepting client withdrawals last month, and it is a part of the Digital Currency Group (DCG), which has struggled since the demise of FTX.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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