- Alameda Research, an affiliate of bankrupt crypto exchange FTX has dropped its case against Grayscale.
- The lawsuit’s dismissal comes as Grayscale’s GBTC sees huge outflows following SEC’s spot Bitcoin ETF approval.
Alameda Research, the collapsed crypto trading arm of bankrupt cryptocurrency exchange FTX, has dropped its lawsuit against Grayscale Investments. Reuters highlighted Alameda Research’s move to drop the case in a report on Monday.
Alameda Research drops Grayscale lawsuit
The FTX affiliate filed its lawsuit against Grayscale in March 2023 and alleged that the GBTC issuer had enriched itself at the expense of its shareholders.
Alameda Research’s lawsuit came before Grayscale’s eventual victory over the US Securities and Exchange Commission (SEC), with the legal milestone setting in motion the events that led to SEC’s approval of several spot Bitcoin ETFs, including Grayscale’s Bitcoin Trust (GBTC).
With the approval and conversion of GBTC into a spot ETF, Grayscale investors have been able to redeem their shares. In its lawsuit, Alameda claimed that the digital asset manager, which also seeks to convert its Ethereum Trust (ETHE) into a spot Ethereum ETF, charged high fees and wasn’t allowing redemptions.
The approval of GBTC as a spot Bitcoin ETF has addressed the redemptions issue, with Grayscale seeing a massive outflow since GBTC began trading on January 11, 2024. On Monday, the company reportedly sent 15,308 BTC worth over $623 million to Coinbase Prime.
Grayscale deposited 15,308 $BTC($623.8M) to #CoinbasePrime again 50 mins ago.
Since the ETF was passed, #Grayscale has deposited 63,991 $BTC($2.68B) to #CoinbasePrime during the opening hours of U.S. stocks (14:30 UTC).
According to Arkham, #Grayscale currently holds 549,116… pic.twitter.com/i1LtKryu6W
— Lookonchain (@lookonchain) January 22, 2024
With over 63,000 BTC sold since, one of the likely sellers could be the FTX estate, given it has offloaded several assets in the past few weeks.
Bitcoin price has struggled amid the BTC dump, reaching lows of $40,367 on Monday, January 22, 2024.
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