Osprey Funds, seen as Grayscale’s biggest competitor in the digital asset space, has sued Barry Silbert’s company over GBTC. Osprey alleges that Graycale was acting as if it was possible even though he knew GBTC stock would not turn into an ETF and advertised it.
“Misleading and unfair actions…”
The company, which also has a Bitcoin fund called OBTC, filed a complaint with the Connecticut Supreme Court alleging that Grayscale “followed an unfair and misleading policy” regarding its plan to convert GBTC shares into ETFs. In the petition, it is stated that Grayscale advertises GBTC as “inevitably will turn into an ETF” and thus conducts a misleading campaign.
Osprey also noted that there are only two companies in the sector and the biggest reason for Grayscale having the largest share with 99.5 percent in this sense is the “misleading marketing” of converting this ETF.
They sued the SEC
As it is known, Grayscale has long wanted to convert GBTC shares into a Bitcoin ETF. Grayscale company, which also made an agreement with the famous US financial institution NYDIG, sued this institution when it was rejected by the SEC. The SEC has not accepted any Bitcoin ETF (spot) so far.
Grayscale company, in the lawsuit it filed against the SEC, claimed that the institution acted arbitrarily and capriciously, and also discriminated against issuing institutions. The petition further states, “The SEC is moving too far from its regulatory mandate.” expressions were used.
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