- 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.
In a surprising turn of events, Alameda Research, the collapsed crypto trading arm of bankrupt cryptocurrency exchange FTX, has chosen to drop its lawsuit against Grayscale Investments. For the full report, see Reuters.
The lawsuit, which was filed against Grayscale in March 2023, alleged that the GBTC issuer had profited at the expense of its shareholders.
Alameda Research’s lawsuit predates Grayscale’s recent victory over the US Securities and Exchange Commission (SEC), which paved the way for the 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. Alameda had claimed that the digital asset manager charged high fees and wasn’t allowing redemptions.
Following the approval of GBTC as a spot Bitcoin ETF, Grayscale has seen 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
Since then, over 63,000 BTC have been sold, and the FTX estate may be one of the likely sellers, as it has offloaded several assets in the past few weeks.
The BTC dump has caused the price of Bitcoin to plummet to lows of $40,367 on Monday, January 22, 2024.