Grayscale’s SEC Victory May Render Alameda’s Redemptions Lawsuit Unnecessary, Bloomberg Analysts Say

A knock-on effect of Grayscale’s recent favorable ruling against the U.S. Securities and Exchange Commission is that it potentially render meaningless a lawsuit brought by FTX affiliate Alameda Research, which called for the Grayscale Bitcoin Trust to reduce its fees and implement a redemption program.

Grayscale’s victory over the SEC could pave the way for the company to convert it into the first U.S. spot bitcoin ETF – a shift that would permit redemptions of fund shares, making Alameda’s suit unnecessary, litigation analysts from Bloomberg Intelligence said in a note on Wednesday. (Redemptions could allow the fund to remain more closely tied to the value of its underlying bitcoin holdings, something it’s struggled to do for quite a while.)

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“The Grayscale court ruling probably shows that Alameda’s attempt to unlock about $9 billion for Grayscale shareholders was premature and ultimate resolution of the issue may be prolonged,” the analysts wrote.