Asset management firms Grayscale and Osprey have finally put an end to a two-year-long legal battle over the marketing of Bitcoin Exchange-Traded Funds (ETFs).
The prolonged legal back-and-forth culminated in a settlement, with Grayscale Investments and Osprey Funds reaching an agreement in a lawsuit concerning how Grayscale promoted its Bitcoin Trust (GBTC).
Grayscale and Osprey End the Legal Feud
The case first began in early January 2023 when Osprey accused Grayscale of misleading investors about the chances of turning GBTC into a Bitcoin exchange-traded fund (ETF). Osprey claimed this gave Grayscale an unfair edge over competitors like itself, which also runs a smaller Bitcoin trust (OBTC).
The dispute escalated when Grayscale received approval from the SEC in January 2024 to convert GBTC into an ETF. Later, Osprey updated its complaint, saying that Grayscale wasn’t honest about its progress toward ETF approval. Grayscale denied the allegations and even filed counterclaims, and accused Osprey of similar tactics. Those claims were later dropped.
In February 2025, a Connecticut judge ruled in favor of Grayscale, saying state trade law didn’t apply in this case. Osprey appealed the decision, but soon after, both sides agreed to settle. According to court documents filed on April 9, the final terms should be completed within 45 days.
The details of the settlement, including whether either company admitted fault, haven’t been made public yet.
Grayscale recently made headlines after it filed for an approval of a spot Avalanche ETF from the SEC. Not just that, Grayscale has also filed for Solana ETF in April, leading SOL to a brief surge.
