Grayscale Investments and Osprey Funds have settled a two-year legal dispute regarding the advertising and promotion of Grayscale's Bitcoin exchange-traded fund (ETF). The Connecticut Appellate Court filing indicates that both parties are currently finalizing the settlement documentation and terms, which are expected to be completed within 45 days. Osprey had initially filed the lawsuit in January 2023, alleging that Grayscale's promotion of its Grayscale Bitcoin Trust (GBTC) misleadingly suggested a guaranteed conversion to a spot Bitcoin ETF amidst regulatory uncertainty. Following a ruling by Judge Mark Gould in February 2023 that dismissed Osprey's claims, Osprey sought to reargue the case, asserting that the ruling came prematurely. This settlement concludes a notable legal battle within the crypto asset management space as Grayscale’s GBTC is considered one of the largest Bitcoin investment vehicles in the U.S. The case highlighted the ongoing competition in the market for Bitcoin ETFs, especially following Grayscale’s successful SEC application for conversion to a spot ETF in January 2024.

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