Hedge Fund Fir Tree Sues Grayscale for Data on Battered Bitcoin Trust – Bloomberg

Hedge Fund Fir Tree Sues Grayscale for Data on Battered Bitcoin Trust – Bloomberg

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  • 00:00[CC may contain inaccuracies] What do we know so far? Yes, so let’s just start with some of the context here around this, because the issues around the grayscale investments, Bitcoin trust have been pretty well telegraphed, but essentially grayscale is owned by Digital Currency Group and it also owns a genesis, a global trading. And that’s a crypto lender that we’ve been covering as well because it hold withdrawals back in November. And there’s been a lot of questions around the health of its parent. But the premise of Bitcoin trust essentially is that it provides investors with access to Bitcoin without needing to buy the coins directly. And so you can see here this chart taking a look at the premium for much of the bull run. Gray scales, the bitcoin trust was trading basically at a premium to the underlying technology, but that has certainly reversed. And there’s been a couple of factors for that, because you can see that huge discount, the basically around the firm issuing a lot of shares and it hasn’t redeemed them. So now it is being sued by a hedge fund and invest a fir tree. And it’s basically filed a complaint to a court in Delaware. It wants to get information from the company to then investigate any potential mismanagement, conflicts of interest. And so we’re told that it basically then wants to use this to push gray scale to try and ease that discount that you just saw there between the share price and with Bitcoin, in part by lowering the fees and also resuming redemptions.

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