FTX sister firm Alameda has sued crypto investment firm Grayscale and its owner, Digital Currency Group, over the structure of their large Bitcoin and Ethereum trusts.
Alameda owns over 22 million shares in Grayscale’s Bitcoin trust and 6 million shares in its Ethereum trust.
- According to Alameda, the shares are worth $290M on secondary markets.
- Alameda claims the shares would be worth twice as much if Grayscale reduced its fees and allowed investors to redeem their shares for the equivalent value in the underlying crypto assets.
- Grayscale’s Bitcoin trust is trading at a 45% discount on the price of Bitcoin.
- Grayscale does not allow investors to redeem their shares for the coins held in the trusts.
- The only way investors can exit their investments is by selling their shares in the trusts in the secondary market, where shares are trading at a fraction of their proportionate interest in trust assets.
