Grayscale resolves lawsuit with Fir Tree over proposed changes to Bitcoin Trust

Fir Tree hinted at possible additional litigation against Grayscale and parent company Digital Currency Group based on what its GBTC documentation might reveal.

Grayscale Investments has reached an agreement with New York-based investment firm Fir Tree Capital Management regarding its Bitcoin Trust.

According to a July 11 announcement from Fir Tree, Grayscale agreed to provide additional documents related to its Bitcoin Trust (GBTC) after Fir Tree filed a lawsuit in December 2022. The lawsuit against Grayscale sought that the asset manager halts plans to turn his GBTC trust into a cash exchange-traded fund (ETF) and provide documents about his relationship with Digital Currency Group, Grayscale's parent company.

Fir Tree claimed that approximately 850,000 retail investors have been "harmed by actions hostile to Grayscale shareholders" due to GBTC's lack of a cash or crypto buyback program. Additionally, its legal team said Grayscale attempting to launch a spot crypto ETF could “cost years of litigation, millions of dollars in legal fees, countless hours of wasted management time, and goodwill with regulators.” ".

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"Once Grayscale provides Fir Tree with the GBTC documents it has agreed to produce as part of this agreement, we can further investigate Grays...