Grayscale Investments and Osprey Funds have officially agreed to settle a two-year legal dispute over the advertising of Grayscale’s Bitcoin exchange-traded fund (ETF), according to an April 9 court filing in the Connecticut Appellate Court.
The legal clash began in January 2023, when Osprey accused Grayscale of deceptively promoting its Bitcoin Trust (GBTC) as a guaranteed gateway to a spot Bitcoin ETF — despite regulatory uncertainty at the time. Osprey, which claimed to be Grayscale’s only competitor in the OTC Bitcoin trust market, alleged that the advertising violated Connecticut's Unfair Trade Practices Act.
The filing states that both parties are finalizing the documentation and terms of the settlement, after which Osprey will withdraw its appeal. Specific details of the settlement have not been disclosed.
Grayscale’s GBTC was eventually approved for conversion into a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) in January 2024, following a court-ordered review in August 2023. GBTC now trades on the NYSE Arca.
The case had seen a pivotal moment in February 2025 when Judge Mark Gould ruled in favor of Grayscale, dismissing Osprey’s claims under state law. Osprey responded with a motion for reargument, arguing that the decision came prematurely before discovery was complete.
With the settlement, the crypto asset management space sees one of its major legal rivalries come to a close, as firms continue to jockey for market share in the rapidly evolving Bitcoin ETF landscape.
$BTC #SECGuidance
