Bloomberg: Hedge fund Fir Tree files lawsuit against Grayscale, demands lower fees and reinstated redemptions

Hedge fund Fir Tree is suing cryptocurrency investment firm Grayscale for details about its flagship product, the Grayscale Bitcoin Trust (GBTC), Bloomberg reported citing court documents in Delaware. Fir Tree hopes to use this information to push Grayscale to reduce fees and restore redemptions. The hedge fund claims Grayscale refused to redeem the shares because doing so would cut into profits. Fir Tree said Grayscale charges 2 percent of the market value of the bitcoin it holds in fees, higher than competitors in the market, and last year, Grayscale collected $615.4 million in fees. With assets of $10.7 billion, GBTC’s negative premium is close to a record 43%, and it has fallen nearly 75% this year. Genesis, another subsidiary of Grayscale’s parent company Digital Currency Group (DCG), halted withdrawals in November.