Competitions in cryptography Grayscale and Osprey Settle Two-Year Tussle Over Bitcoin ETFs

After a lengthy legal battle over promotion methods, online property managers Grayscale Investments and Osprey Funds came to an end.

Following Osprey’s appeal of a February choice supporting Grayscale, the parties are looking at 45 days to confirm arrangement documents, according to a movement filed with the Connecticut Appellate Court on April 9.

A version of the movement that was first posted by Law360 reads,” Shortly after this elegance was filed, the parties reached a colony of this situation.” Before the attractiveness may be dismissed, Grayscale and Osprey would then need to “finish documenting the negotiation” and carry out the words.

The complaint, which was filed in January 2023, focused on allegations that Grayscale misled investors regarding the possibility of its Bitcoin Trust ( GBTC ) becoming an exchange-traded fund.

Osprey, a Fairfield-based company that runs its own Bitcoin trust, but with a smaller market share, claimed Grayscale allegedly defrauded Connecticut’s Unfair Trade Practices Act ( CUTPA ) by conducting allegedly deceptive marketing.

Following a drawn-out dispute with the regulator, the dispute with Osprey became more ardent after Grayscale received SEC assent to “uplist” and change its Bitcoin Trust to an ETF in January 2024.

Osprey later challenged its problem, alleging that Grayscale had misrepresented its development in the conversion of ETFs. Osprey is also attempting to change their OBTC into an ETF, according to wikipedia.

On February 7, 2025, Superior Court Judge Mark Gould declared that CUTPA did not apply to assets circumstances, and granted summary view to Grayscale.

Following more than two years of legal trials, which included assertions from Grayscale alleging similar cruel practices by Osprey, was delivered. According to the case history, these assertions were freely dropped prior to the summary judgment.

Before the February decision, Osprey had made an offer to settle the case for around$ 2 million in July 2024, but Grayscale turned down the offer.

Financial details and additional details of the latest settlement contract have not been made public, and it is not known whether either party will admit liability under the terms of the agreement.

Regarding the current arrangement terms, neither company’s representatives have made any public statements.

By media time, had reached out to Grayscale and Osprey, but they had not yet responded.

edited by Sebastian Sinclair