Osprey accused Grayscale of conducting “false and misleading advertising” for the Grayscale Bitcoin Trust (ticker GBTC) since late 2020, according to a complaint filed Monday in Connecticut Superior Court. Grayscale presented that GBTC would be converted into an exchange-traded fund as “foregone conclusion, when it knew that access was never likely to happen,” the suit read. US regulators denied Grayscale’s application for ETF conversion in June, prompting the firm to sue the Securities and Exchange Commission.
Because of those “unfair trade practices,” Osprey alleges that Grayscale has been able to conquer 99.5% of assets in trust-based crypto products despite the fact that GBTC’s fee is four times higher than a similar offering from Osprey. Fairfield, Connecticut-based Osprey manages about $100 million in assets.
Source: Osprey Sues Grayscale (GBTC) for Misleading Advertising on Crypto Trust – Bloomberg