Osprey Funds is the latest digital asset manager to sue rival Grayscale Investments over its nearly $15 billion Bitcoin fund. According to a complaint filed Monday in Connecticut Superior Court, Osprey accused Grayscale of conducting “false and misleading advertising” for the Grayscale Bitcoin Trust (ticker GBTC) since late 2020. Grayscale presented the conversion of GBTC into an exchange-traded fund as a “foregone conclusion, when it knew that access was never likely to happen,” according to the suit. Because of those “unfair trade practises,” Osprey claims Grayscale has captured 99.5% of assets in trust-based crypto products, despite the fact that GBTC’s fee is four times higher than Osprey’s comparable offering.
