Grayscale Slapped With Another GBTC Lawsuit – This Time From Osprey
A competitor of Grayscale Investments has sued the cryptoasset manager, claiming Grayscale has misled investors about its services in an effort to steal market share.
In a suit filed Monday in Connecticut Superior Court, Osprey Funds alleges Grayscale engaged in “deceptive acts and unfair competition” in the asset management industry.
“Grayscale has made materially false and misleading statements in its advertising and promotion to the effect and in substance that turning its bitcoin asset management services into access to a bitcoin ETF was a foregone conclusion, when it knew that access was never likely to happen,” the complaint states.
DCG is the parent company of Grayscale Investments, which has operated GBTC since its 2013 launch. The trust now has roughly $14.6 billion in assets and imposes a 2% management fee.
A spokesperson for Osprey Funds declined to comment beyond the filing. A Grayscale representative did not immediately return a request for comment.
Grayscale is seeking to convert GBTC to an ETF — a process that executives have said would essentially eliminate the roughly 40% discount the vehicle is currently trading at.
The company sued the SEC in June after it chose to block GBTC from becoming an ETF. That case crawls on, as the cryptoasset manager called out the regulator for “illogical” reasoning in its latest brief earlier this month.
This is a developing story.
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