Alameda Research and a number of funds as shareholders GBTC And ETHE filed a lawsuit against the creator of these trusts, Grayscale.
The initiative group intends to obtain the right to redeem shares from the digital asset manager. It also requires compensating “exorbitant” management fees with a reduction in its level to “competitive values” (the current rate is 2% per annum).
The company has received more than $1.3 billion in fees over the past two years, according to court documents.
Grayscale has currently suspended GBTC buybacks. Holders can sell the instrument on the market with a discount of 24.9%.
The plaintiffs accused Grayscale of product mismanagement and a conflict of interest in “a breach of contractual and fiduciary obligations.”
GBTC and ETHE holders can join the class action.
In June 2023, asset manager Grayscale sued the regulator for refusing to convert its flagship GBTC trust into a bitcoin ETF. Application in SEC for the conversion of the investment product, the company made in October 2021.
Recall that on August 29, the Court of Appeal ordered the Commission to reconsider its decision.
The court ruling follows a series of applications to the SEC by a number of large financial institutions like BlackRock and Fidelity for the registration of exchange-traded funds based on the spot price of the first cryptocurrency. Bitcoin ETF futures have been trading in the US since 2021.
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