Bitcoin Trust Grayscale sued by its flagship fund

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Bitcoin Trust Grayscale sued by its flagship fund

According to Bloomberg, Grayscale Investments, a New York-based hedge fund, has been sued by the company's flagship Bitcoin BTCUSD fund for mismanagement and conflicts of interest.

GBTC is a financial tool that allows investors to accessBitcoin without actually purchasing and holding the asset. The coinbase is the custodian of the GBTC, which is backed by the coinbase.

The GrayscaleBitcoin Trust GBTC's discount plunged to a record low discount of more than 43% from the underlyingBitcoin value on Tuesday.

The trust's shares have dropped steadily since February of last year, reaching a 40% discount last month, despite the fact that GBTC once traded at a high premium.

The redemption bar introduced by Grayscale in 2014 is self-imposed, according to Fir Tree. As long as the trust is complied with securities laws, there is no legal justification to prevent GBTC investors from turning their positions into currency.

Fir Tree, which oversees $3 billion assets, said Grayscale's shareholder-unfriendly actions had harmed about 850,000 retail investors.

The complaint, which was submitted to the Delaware Chancery Court on Tuesday, is a books and records action that seeks information that could be used to persuade Grayscale to cancel the discount by reducing the annual 2% management fee and restarting redemptions.

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