Basri Caneri 
Crypto asset management company Osprey Funds has applied to a Connecticut state court to review the court’s ruling in its favor in its $2 million unfair trade lawsuit against Grayscale Investments.
Objection to Court Decision
Osprey filed a motion for reconsideration with the Connecticut Supreme Court on February 10. The company claims that Judge Mark Gould issued his February 7 ruling “without completing the evidentiary process” and “expanding the boundaries of an exemption under the Connecticut Unfair Trade Practices Act (CUTPA).”
In January 2023, Osprey filed a lawsuit against Grayscale and Delaware Trust Company, the manager of its flagship Bitcoin mutual fund (GBTC). In the lawsuit, Osprey alleged that Grayscale lured investors to its fund with misleading advertising and presented the conversion to an ETF as a foregone conclusion.
However, in his February 7 ruling, Judge Gould ruled in Grayscale’s favor, stating that Osprey’s charges related to securities trading, which is exempt from CUTPA law.
Osprey’s Defense and the Future of the Case
In its new petition to the court, Osprey argued that the decision did not take into account the issues of “unfair competition and misleading advertising”.
The company also argued that it had not entered into any securities transactions with Grayscale, and therefore their lawsuit should not be considered a securities transaction. Osprey claimed that the real subject of the lawsuit was the damage to its market share due to Grayscale’s aggressive and misleading marketing tactics.
While this lawsuit was pending, Osprey filed with the SEC to convert its Bitcoin mutual fund (OBTC) into a spot Bitcoin ETF in January 2024. Osprey, which had previously been in merger talks with Bitwise, has turned to an independent ETF process after that deal fell through.
It remains to be seen how the court will respond to Osprey’s appeal and how the company, which competes with Grayscale, will be affected by this case.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.