Lawsuit Against Grayscale: Bloomberg Reports

H

edge Fund Fir Tree Capital Management is suing Grayscale Investments in an attempt to have the company lower its fees and allow for investors to gain exposure to the price movement of bitcoin without having to actually purchase the asset.

Delaware court documents reveal Hedge fund Fir Tree Capital Management is suing crypto investment fund Grayscale Investments to get information which would allow them to explore potential mismanagement and conflicts of interest, Bloomberg News reported.

Fir Tree is urging Grayscale to lower fees and resume redemptions in order to close the large discount its trading at compared to the bitcoin it holds, Bloomberg reported according to sources.

According to the complaint, Grayscale investors have been unfairly treated and disadvantaged by "shareholder-unfriendly actions."

"We remain 100% committed to converting GBTC to an ETF, as we strongly believe this is the best long-term product structure for GBTC and its shareholders," the spokesperson said.

Since the FTX crypto exchange collapse, Grayscale (part of the Digital Currency Group) has faced challenges. Last month, sister firm Genesis halted client withdrawals.

Chris

An editor at Coincrop

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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.