{"id":126978,"date":"2025-04-11T09:15:57","date_gmt":"2025-04-11T09:15:57","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126978"},"modified":"2025-04-11T09:15:57","modified_gmt":"2025-04-11T09:15:57","slug":"grayscale-and-osprey-end-2-year-legal-fight-over-bitcoin-etf-promotion","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126978","title":{"rendered":"Grayscale and Osprey end 2-year legal fight over Bitcoin ETF promotion"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsAsset managers Osprey Funds and Grayscale Investments agreed to settle a lawsuit over alleged violations of Connecticut law in the advertising and promotion of Grayscale\u2019s Bitcoin exchange-traded fund (ETF).\u00a0<br \/>\nAccording to an April 9 court filing, the parties agreed to settle the two-year-old case and are finalizing documentation and settlement terms. The filing noted that once those steps are completed, Osprey will withdraw its appeal.<br \/>\n\u201cSoon after this appeal was filed, the parties reached a settlement of this case,\u201d the motion stated. \u201cIt is expected that all these tasks can be done within 45 days, and it is uncertain whether a shorter extension would suffice.\u201d<br \/>\nDetails of the settlement have not been made public.\u00a0<br \/>\nGrayscale and Osprey reach settlement<br \/>\nThe legal battle between the two firms started on Jan. 30, 2023, when Osprey filed a suit in the Connecticut Superior Court. Osprey claimed it was Grayscale\u2019s only competitor in the over-the-counter Bitcoin (BTC) trust market and that Grayscale had maintained its market share through deceit.\u00a0<br \/>\nOsprey claimed Grayscale promoted its Grayscale Bitcoin Trust (GBTC) as a means to access a spot Bitcoin ETF through a conversion. Osprey argued that the conversion was presented as a certainty, despite regulatory uncertainty at the time.<br \/>\nGrayscale\u2019s application to convert GBTC into a spot ETF was approved by the US Securities and Exchange Commission in January 2024.<br \/>\nAn August 2023 ruling compelled the SEC to reconsider its rejection of Grayscale\u2019s application to convert the fund into an ETF.\u00a0<br \/>\nThe SEC\u2019s approval allowed GBTC to transition into a spot ETF and begin trading on the NYSE Arca exchange.<br \/>\nRelated: Crypto ETPs shed $240M last week amid US trade tariffs \u2014 CoinShares<br \/>\nLawsuit settlement follows Osprey appeal\u00a0<br \/>\nOn Feb. 7, Judge Mark Gould sided with Grayscale, ruling that Osprey\u2019s claims against the asset manager were exempted from the Connecticut Unfair Trade Practices Act.\u00a0<br \/>\nOsprey responded by filing a motion for reargument on Feb. 10. The fund claimed that Gould\u2019s ruling came \u201cbefore the close of discovery,\u201d which is the formal evidence-gathering phase of a lawsuit.<br \/>\nThe fund claimed that the ruling overlooked the differences between how the Federal Trade Commission and Connecticut courts treat deceptive advertising.\u00a0<br \/>\nThe settlement ended one of the more prominent legal clashes among crypto asset managers competing for early ETF dominance. Grayscale\u2019s GBTC remains one of the largest Bitcoin investment vehicles in the United States.<br \/>\nMagazine: Illegal arcade disguised as \u2026 a fake Bitcoin mine? Soldier scams in China: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/grayscale-osprey-lawsuit-connecticut-court-bitcoin-etf?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsAsset managers Osprey Funds and Grayscale Investments agreed to settle a lawsuit over alleged violations of Connecticut law in the advertising and promotion of Grayscale\u2019s Bitcoin exchange-traded fund&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126978"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126978"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126978\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126978"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}