Osprey Funds, a digital asset manager, has filed a lawsuit in a US court against Grayscale Investments, the operator of the world’s largest bitcoin fund, alleging that the company misinterpreted the fund’s potential to become an exchange-traded fund (ETF).
Osprey, which operates a competing Bitcoin Trust (OBTC), allegedly i Documents filed with Connecticut Supreme Court that its competitor had engaged in “unfair and deceptive practices and unfair competition in the asset management industry”.
The company accuses Grayscale of advertising the Bitcoin Trust (GBTC) on the basis of converting it to a Bitcoin ETFs Sometime in the future it was an “expected outcome”.
Grayscale, sort of other companiesIt was unacceptable by the Securities and Exchange Commission (SEC) when attempting to create a Bitcoin ETF. To date, the regulator has not approved the launch of any crypto ETF in the US
While Grayscale has continued to fight the decision, calling the SEC’s thinking “inconsequential” earlier this month, Osprey now claims that Grayscale executives knew investors were never likely to be granted access to a Bitcoin ETF.
The suit alleged that Grayscale “launched campaign after campaign” to convince investors that a shift to an ETF was “inevitable.” “Greyscale has learned that this letter was a fake.”
Osprey also claims that Grayscale’s alleged and deceptive advertising and marketing is the only reason it can capture 99.5% of the market share where Osprey is the only other player.
The lawsuit alleges that “Osprey lost management fees and profits to Grayscale as a result of its unfair business practices.”
Osprey’s attorneys proposed awarding the company damages based on the profits and fees it allegedly lost as a result of Grayscale’s conduct.
Decrypt Contact Osprey and Grayscale representatives for comment.
Grayscale’s latest challenge, DCG
Earlier this month, Osprey founder and CEO Greg King published an open letter to Barry Silbert, chairman of Grayscale’s owner Digital Currency Group (DCG), arguing that Osprey should take over as sponsor of GBTC.
Gråskala and Osprey are the only suppliers with the required expertise [to manage GBTC]But only Osprey has confidence.
His company isn’t the only one that has bones to pick with Grayscale and its owners.
Earlier this year, Cameron Winklevoss of Gemini leveled a series of accusations against Silbert W He asked him to resign. Winklevoss and his now twin brother Tyler Thinking of filing a lawsuit Silbert and DCG get an unpaid loan they made to the now bankrupt Genesis Global.