Hedge fund Fir Tree Capital Management is suing crypto investment fund Grayscale Investments for information to investigate potential mismanagement and conflicts of interest, Bloomberg News reported, citing Delaware court documents.
Fir Tree wants to use the the information to push Grayscale to address the large discount it trades at relative to the bitcoin it holds by lowering fees and resuming redemptions, Bloomberg cited sources as saying.
The complaint also alleges that Grayscale investors have been harmed by "shareholder-unfriendly actions."
"In 2013, we launched Grayscale Bitcoin Trust (GBTC) to provide investors with access to Bitcoin – always with the intention of converting it to an ETF when permitted by U.S. regulators," a company spokesperson said in an email to The Block, adding that the company respects the views of shareholders and appreciates "engaging directly with them on the details of our product structures and operating model."
"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.
Grayscale is part of the Digital Currency Group (DCG) that has faced challenges after the collapse of the FTX crypto exchange, with sister firm Genesis halting client withdrawals last month.
(Updates with comment from Grayscale in fourth paragraph.)
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