Crypto Competitors Grayscale and Osprey Settle Two-Year Tussle Over Bitcoin ETFs

Digital asset managers Grayscale Investments and Osprey funds have reached a settlement agreement after their long-term legal dispute about marketing practices.

From a motion submitted to the Appellate Court on 9 April, the parties look at 45 days to complete the settlement documentation after Osprey appealed against a February decision that preferred Grayscale.

“Shortly after this appeal was filed, the parties reached a regulation of this case,” is a copy of the motion that was first uploaded by LAW360. Grayscale and Osprey should then “finish the documentation of the settlement” and implement the conditions before the profession can be drawn.

The court casesubmitted in January 2023, centered on accusations That gray -known investors misled about the prospects of his Bitcoin Trust (GBTC) who converted into a listed fund.

Fairfield-based Osprey, which operates its own Bitcoin trust, although with a smaller market share, claimed that Grayscale Connecticut’s Unmospheres Act (Cutpa) has violated by alleged misleading marketing.

Court reports show that the lawsuit with Osprey Intensified after Grayscale SEC chementary approval received “tidy up“And convert his Bitcoin trust to one ETF in January 2024, after a long -term battle With the regulator.

Osprey subsequently changed his complaint and claimed that Grayscale has misunderstood his progress to ETF conversion. Osprey still works to turn their OBTC into an ETF.

Judge Mark Gould of the Supreme Court promised In summary judgment to Grayscale on 7 February 2025, ruling that Cutpa did not apply to securities affairs.

That judgment came after more than two years of legal proceedings, including the counterclaims of Grayscale that claimed similar unfair practices of Osprey. These counterclaims were voluntarily decreased before the summary judgment, the case history Shows.

It is worth noting that Osprey had tried to arrange the case in July 2024 before the February ruling for around $ 2 million, but Grayscale refused that offer.

Financial conditions and other conditions of the current settlement agreement have not been announced and it remains unclear whether the agreement includes any admission of liability by both parties.

Representatives from both companies have not issued public statements with regard to the current settlement conditions.

Decrypt has contacted Grayscale and Osprey but has not received a response at the time.

Published by Sebastian Sinclair