The Grayscale Bitcoin Trust (GBTC) is seeing its discount to net asset value decrease ahead of a court hearing regarding Grayscale Investments' lawsuit against the US Securities and Exchange Commission (SEC). Grayscale is contesting the SEC's decision to reject the trust's conversion into an exchange-traded fund. The "Grayscale discount" has fallen to 42% as of press time, the lowest it has been since early February. Meanwhile, Alameda Research, a sister company to FTX, is suing Grayscale Investments and its CEO for over $250m, alleging that excessive management fees and artificially lowered net asset values have caused harm to FTX's creditors and customers.
The Biden administration is also reportedly monitoring the situation at Silvergate Bank, while trading volumes in tether-denominated bitcoin pairs have increased.