Alameda Research, an affiliate of bankrupt crypto exchange FTX, has dropped its lawsuit against Grayscale Investments. This comes as Grayscale’s GBTC experiences significant outflows following the SEC’s approval of spot Bitcoin ETFs.
The lawsuit was filed by Alameda Research in March 2023, accusing Grayscale of enriching itself at the expense of its shareholders. However, with the recent approval of several spot Bitcoin ETFs, including Grayscale’s Bitcoin Trust (GBTC), investors have been able to redeem their shares.
This approval also addresses the issue of high fees and lack of redemptions that Alameda Research had previously raised in their lawsuit. Since the ETF was passed, Grayscale has deposited 63,991 BTC (worth over $2.68 billion) to Coinbase Prime during the opening hours of U.S. stocks.
It is speculated that one of the major sellers in this massive outflow could be the FTX estate, as they have been offloading assets in recent weeks. The Bitcoin price has also been affected by this dump, with lows of $40,367 on Monday, January 22, 2024.
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