Bitcoin ETF

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FTX’s sister company, Alameda Research, willingly dismissed litigation action against Digital Currency Group’s Grayscale Investments shortly after spot BTC ETF approval.
Court filings from Jan. 22 showed that Alameda opted out of suing Grayscale, its CEO Michael Sonnenshein, its parent company Digital Currency Group’s (DCG), and founder Barry Silbert over a ban on Grayscale’s Bitcoin Trust (GBTC) redemptions.
The lawsuit submitted in March last year <a href="https://crypto.news/ftx-sues-grayscale-and-dcg-citing-mismanagement/" target="_blank" rel="noopener noreferrer nofollow">alleged</a> that Grayscale implemented a self-dealing and unfair regulation ban that withheld over $9 billion in value from FTX’s bankrupt estate.
CEO John J. Ray III, FTX’s new boss following Sam Bankman-Fried’s resignation, said the suit sought injunctive relief at the time amid an amalgamation of assets earmarked for creditors and operational expenses.
You might also like: <a href="https://crypto.news/sam-bankman-frieds-parents-seeking-dismissal-of-ftx-lawsuit/" rel="noopener noreferrer nofollow"> Sam Bankman-Fried’s parents seeking dismissal of FTX lawsuit </a>
A Grayscale representative who <a href="https://www.reuters.com/legal/ftx-tied-alameda-research-drops-lawsuit-against-grayscale-2024-01-22/?taid=65ae88cdf27bc30001feb542&amp;utm_campaign=trueAnthem:+Trending+Content&amp;utm_medium=trueAnthem&amp;utm_source=twitter" target="_blank" rel="noopener noreferrer nofollow">confirmed</a> the news added that Alameda’s decision to withdraw upholds the asset manager’s view on the motion. Sonnenshein’s company had previously argued that the FTX-affiliated crypto trading firm had zero legal ground for a lawsuit.&nbsp;
Alameda’s about-face comes on the heels of regulatory nods from the Securities and Exchange Commission (SEC) toward spot Bitcoin ETFs. The development <a href="https://crypto.news/sec-approves-spot-bitcoin-etf-on-accelerated-basis/" target="_blank" rel="noopener noreferrer nofollow">allowed</a> Grayscale to convert its flagship fund, GBTC, into an exchange-traded fund underpinned by Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>).
Private data cited by CoinDesk reportedly revealed 22 million GBTC shares sold by FTX, a haul comprising $2 billion in <a href="https://crypto.news/analyst-grayscale-bitcoin-trust-sellout-has-clear-reasons/" target="_blank" rel="noopener noreferrer nofollow">outflows</a> from Grayscale’s Bitcoin ETF since the SEC issued approval on Jan. 10.
The SEC was instructed to re-review spot Bitcoin ETFs after losing to Grayscale in court. Three Washington D.C. judges <a href="https://crypto.news/us-congressman-urges-genslers-sec-exit-amid-grayscale-ruling/" target="_blank" rel="noopener noreferrer nofollow">ruled</a> that the SEC was “arbitrary and capricious” in denying spot BTC ETFs while already approving Bitcoin futures ETFs, which operate as a similar product.&nbsp;
Read more: <a href="https://crypto.news/grayscale-has-offloaded-2-14b-in-btc-since-etf-approval/" rel="noopener noreferrer nofollow"> Grayscale has offloaded $2.14b in BTC since ETF approval </a>

FTX’s Alameda Research withdraws Grayscale lawsuit

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