Grayscale Wins Legal Battle to Launch First Bitcoin ETF in the US, Bitcoin Price Surges 6%
Grayscale Investments LLC has won a significant legal battle and can now launch the first Bitcoin exchange-traded fund (ETF) in the US, potentially attracting more investment. Bitcoin's price rose by 6% following the announcement, with a 24-hour trading volume of over $17.5 billion. The SEC's decision to halt the ETF was overruled by a three-judge appeals panel in Washington, allowing Grayscale to create and redeem shares in tandem with fluctuating demand. The move to an ETF could unlock around $5.7 billion from Grayscale's $16.2 billion trust, marking a milestone in the mainstream financial world's ever-evolving cryptocurrency landscape.
Grayscale Trust Shareholders Jointly Sue Grayscale for Recovery of Cryptocurrencies and Management Fees
Shareholders of Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) have filed a lawsuit against Grayscale. Their goal is to legally force Grayscale to allow redemption of the cryptocurrencies held in its trusts by customers and to repay the "excessive" management fees.
One of the largest shareholders of GBTC and ETHE, Alameda Research, has filed a lawsuit against Grayscale, with numerous funds joining as plaintiffs. The complaint has been filed with the Delaware Chancery Court, alleging that Grayscale has violated "contracts and fiduciary obligations to Alameda and other trust investors."
According to court documents, Grayscale has collected more than $1.3 billion in fees in just the past two years. The plaintiffs are seeking to recover these funds and renegotiate the fee structure of GBTC and ETHE to achieve "competitive rates."
X (formerly Twitter) User: Preliminary Ruling on 5 Bitcoin Spot ETFs on Friday
Social media user tier10k (formerly on Twitter) revealed that something big might happen this week. If you believe the ETF experts, there may be a ruling from Grayscale against the US Securities and Exchange Commission today/Friday. A preliminary ruling will be made on Friday for 5 Bitcoin spot ETFs: Bitwise, BlackRock, VanEck, WisdomTree, and Invesco.
Data: Grayscale GBTC’s negative premium rate expanded to 26.83%
According to Coinglass data, the current total value of Grayscale's holdings is about $23.653 billion, with a negative premium rate of 26.83% for Grayscale Bitcoin Trust (GBTC) and 34.62% for ETH Trust. In addition, ETC Trust has a negative premium of 52.69%, and LTC Trust has a negative premium of 29.02%.
Fir Tree Partners, Saba Capital and other institutions intend to join Alameda's lawsuit against Grayscale
On August 21st, Alameda Research, UTXO Management, and Balch & Bingham LLP launched GrayscaleLitigation.com to allow interested parties to join Alameda's plaintiff camp against Grayscale's lawsuit.
Alameda initiated the lawsuit in March this year, demanding a reduction in management fees and allowing redemptions. According to Grayscale, unless existing shareholders holding at least 10% of the trust unite as joint plaintiffs, this effort cannot proceed.
It is reported that, in addition to UTXO Management, Fir Tree Partners, Saba Capital, Owl Creek Asset Management, and Aristides Capital have expressed interest in joining Alameda's lawsuit as joint plaintiffs.
Grayscale: This week's decline in the crypto market seems to be related to macro factors
Grayscale has published an analysis article on its official website stating that this week's decline in the cryptocurrency market seems to be related to macro factors. In the two trading days prior to this week, despite the general weakness of global asset markets, Bitcoin has been maintaining a narrow range of about $29,000-$30,000. We believe that this month's sell-off in the stock and bond markets is due to concerns about the Chinese economy, as well as the widespread budget deficits and the pressure on the bond market caused by the Federal Reserve's quantitative tightening policy.
We believe that as cross-investors reduce portfolio risk, the simultaneous sell-off in the stock and fixed income markets eventually spread to the cryptocurrency market. Although we see various positive factors in the digital asset industry in the coming months, the macro market background is still full of challenges and may continue to be the source of price fluctuations.
Grayscale: Hiring senior advisors for the ETF team
On August 17th, Grayscale officially announced that our ETF team is recruiting for a highly skilled and analytically strong senior advisor who is proactive. The advisor will assist Grayscale's ETF team in various stages of the product lifecycle, including product strategy, conceptualization, listing, and post-listing support.
Data: Grayscale GBTC’s Negative Premium Rate Narrowed to 23.90%
According to Coinglass data, the current total value of Grayscale's holdings is approximately $27.794 billion, with Grayscale Bitcoin Trust Fund (GBTC) having a negative premium rate of 23.90%, ETH Trust having a negative premium rate of 35.96%. In addition, ETC Trust has a negative premium of 55.82% and LTC Trust has a negative premium of 38.74%.
Data: Grayscale GBTC’s Negative Premium Rate Narrowed to 25.31%
According to Coinglass data, the current total value of Grayscale's holdings is approximately $28.18 billion, with a negative premium rate of 25.31% for Grayscale Bitcoin Trust Fund (GBTC); a negative premium rate of 35.41% for ETH Trust; a negative premium rate of 55.74% for ETC Trust; and a negative premium rate of 37.62% for LTC Trust.
Alameda Research Requests to Call Co-Plaintiffs in Case Against Grayscale
Alameda Research, the cryptocurrency hedge fund founded by Sam Bankman-Fried, is gathering more plaintiffs to join its lawsuit against Grayscale Investments. <br>
