Grayscale Investments and Fir Tree Capital Management, a New York City investment company, have settled their differences about the management of Grayscale’s Bitcoin Trust.
After a lawsuit was launched by Fir Tree in December 2022, Grayscale reportedly agreed on July 11 to release more information about its Bitcoin Trust (GBTC).
According to Fir Tree, “About 850,000 retail investors were harmed by Grayscale’s shareholder-unfriendly actions since the company did not provide a redemption program for GBTC into cash or cryptocurrency.”
In addition to this, Grayscale’s legal team said that “the company’s effort to establish a spot cryptocurrency ETF might cost years of disputes, millions of dollars in legal fees, many hours of lost management time, and goodwill with regulators.”
The United States Securities and Exchange Commission (SEC) refused Grayscale’s application in June 2022 to convert its Bitcoin Trust into a spot Bitcoin ETF, prompting the company to pursue a suit against the SEC. Despite petitions from BlackRock and other investment companies, the SEC has not authorised any spot crypto investment vehicle while the litigation is still underway.
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