New York, Monday, January 22, 20245- In an unexpected twist in the cryptocurrency market, collapsed hedge fund Alameda Research abandoned its lawsuit against Bitcoin fund manager Grayscale, reports said. 1
This resulted in Grayscale shares rising and igniting concerns about a potential Bitcoin price dive.
Alameda and Grayscale were locked in a legal battle over the latter’s Bitcoin Trust (GBTC) for months. Alameda alleged an “improper redemption ban” on its shares.
With the lawsuit now dropped, Grayscale is free to continue with its planned conversion of GBTC into an Exchange-Traded Fund (ETF) based on Bitcoin prices.
However, analysts remained divided on the future. Some say the potential ETF could be a boost for Grayscale’s legitimacy and an attraction for new investors, further propelling share prices.
Others warn of a domino effect, where extensive redemptions trigger a Bitcoin crash, sending ripples through the entire crypto landscape.
- Coin desk: https://downloads.coindesk.com/legal/Alameda%20-%20Notice%20of%20Voluntary%20Dismissal%20without%20prejudice%20by%20Plaintiff%20Alameda%20Research%20Ltd%20%28docket-stamped%29.pdf[↩]
