, New York-based hedge fund Fir Tree is suing crypto investment firm Grayscale Investments at the Delaware Court of Chancery to obtain information about its flagship Grayscale Bitcoin Trust in order to investigate potential mismanagement and conflicts of interest.
“That strategy will likely cost years of litigation, millions of dollars in legal fees, countless hours of lost management time, and goodwill with regulators,” Fir Tree’s lawyers said in the complaint. “All the while, Grayscale will continue to collect fees from the trust’s dwindling assets.”Fir Tree wants Grayscale to resume redemptions and lower fees for the trust which has $10.7 billion in assets and is the world’s largest publicly traded crypto fund.
GBTC is trading at nearly a record 43% discount to the price of the trust’s underlying Bitcoin and is down nearly 75% this year as a result of Bitcoin’s sharp decline and the collapse of several high-profile crypto firms such as FTX.