FTX-affiliated Alameda Research has dropped its lawsuit against Grayscale Investments after converting Grayscale's flagship product into an exchange-traded fund (ETF), according to a new court filing.

- The lawsuit, filed in March, accused Grayscale of keeping more than $9 billion of investor funds locked up in Bitcoin Trust (GBTC) after the collapse of FTX.

- On Monday the claim was withdrawn without giving a reason.

- As a result of converting GBTC into an ETF, investors were able to exit their positions, with approximately $2.8 billion exiting GBTC last week.

- The dismissal of the lawsuit comes shortly after FTX sold more than $1 billion worth of GBTC shares.