The so-called “unsuitable redemption ban” on shares of Grayscale Investments’ Grayscale Bitcoin Fund (GBTC) is now a ingredient of the previous, with the fund’s conversion into an commerce-traded fund (ETF).

The skill to redeem funds kicked in when GBTC began trading on the Unique York Stock Change (NYSE) as an ETF earlier this month, and investors have waited no time in cashing out, with the fund seeing $2.2 billion price of outflows since.

Alameda Compare, the collapsed crypto trading firm which sued Grayscale final March over its excessive prices and prevention of redemptions, has now dropped the lawsuit voluntarily, in keeping with a court docket submitting on Monday.

Unchained reported earlier that Alameda’s sister firm FTX used to be accountable for conclude to $1 billion of the outflows from GBTC, with the bankrupt crypto commerce liquidating its complete preserving of 22 million GBTC shares.

At the time of the initial lawsuit, FTX’s new CEO John Ray III acknowledged that the monetary catastrophe property’s goal used to be to maximize recoveries for collectors and release payment that used to be “currently being suppressed by Grayscale’s self-dealing and unsuitable redemption ban.”

In a mosey filed in August 2023, Alameda acknowledged it used to be in the strategy of adding more plaintiffs to its lawsuit, claiming at the time that bigger than forty five events had already indicated their willingness to grab part.

“Alameda’s voluntary dismissal underscores Grayscale’s advise that this ethical mosey used to be fully without merit,” acknowledged a Grayscale spokesperson in a assertion to The Block earlier this day.

In the meantime, the outflows from GBTC have had a profound attain on the price of Bitcoin, which is now trading under $40,000 after losing conclude to 7% in the final week. Nonetheless, some market individuals are optimistic that the selling strain will ease off after FTX’s GBTC holdings are liquidated.