Grayscale and Osprey settle Bitcoin ETF dispute

Grayscale Investments and Osprey Funds have reached a settlement agreement in their long-standing legal dispute over marketing practices related to Bitcoin (CRYPTO:BTC) ETFs. 

A recent motion filed with the Connecticut Appellate Court indicates that the parties have up to 45 days to finalize the settlement documentation. 

The lawsuit, initiated by Osprey in January 2023, centered on allegations that Grayscale misled investors about the prospects of converting its Bitcoin Trust (GBTC) into an ETF.

Osprey claimed Grayscale violated Connecticut's Unfair Trade Practices Act (CUTPA) through deceptive marketing, which allegedly diverted customers from Osprey's own Bitcoin Trust (OBTC).

The legal battle intensified after Grayscale received SEC approval to convert GBTC into an ETF in January 2024, following a prolonged regulatory fight.

Osprey amended its complaint, arguing that Grayscale misrepresented its progress toward ETF conversion. 

In February 2025, Superior Court Judge Mark Gould granted summary judgment to Grayscale, ruling that CUTPA did not apply to securities cases.

The financial terms of the settlement have not been disclosed, and it remains unclear whether either party has admitted liability. 

Representatives from both companies have not issued public statements regarding the settlement terms.

At the time of reporting, the Bitcoin price was $80,414.56.