Hedge fund Fir Tree Capital Management filed a lawsuit against Grayscale Investments over “potential mismanagement and conflicts of interest,” according to a Bloomberg report.
At the core of the lawsuit, filed in Deleware, is for Grayscale to lower its fees, begin redemptions, and hand over documents dealing with Grayscale’s relationship with the Digital Currency Group.
Digital Currency Group has several big-name crypto subsidiaries: Genesis Global Trading, Grayscale Investments, Foundry, Luno, and CoinDesk.
Another demand from Fir Tree Capital is that Grayscale terminate its attempts to convert the Bitcoin trust ($GBTC) into an ETF.
Fir Tree fears the continued attempts to convert the trust into an ETF will be long, costly, and would likely benefit Grayscale because they would continue to collect their fees.
A Grayscale spokesperson spoke to the cryptocurrency news outlet, Cointelegraph, and said, “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.”
Grayscale’s most recent attempt to convert into an ETF failed, resulting in Grayscale suing the SEC in October.
The GBTC Discount to NAV remains near historical all-time lows, currently at -43.61%
GBTC has traded lower since the news came out about the lawsuit. In combination with the selling pressure in crypto, the result has been a nearly -7% drop for GBTC.
