Grayscale has been trying to convert itself into an Exchange Traded Fund (ETF) for quite some time but is being rejected by the SEC. Recently, digital asset manager Osprey Funds filed a suit against Grayscale on January 30, 2023, for violation of the state’s Unfair Trade Practice Act, concerning their advertising and promotion of Bitcoin ETH.
What does the Suit say?
The filing says that Osprey is the only competitor in the market for Grayscale for the over-the-counter traded Bitcoin trust asset management market. At the same time, Grayscale maintained its leading position via con.
“Only because of its false and misleading advertising and promotion has Grayscale been able to maintain to date approximately 99.5% market share in a two-participant market despite charging more than four times the asset management fee that Osprey charges for its services.”
តើមានអ្វីកើតឡើង?
Osprey had alleged Grayscale promoted their participation in Grayscale Bitcoin Trust (GBTC) with hopes of accessing a spot-based Bitcoin ETF through conversion of their $12 billion GBTC. While Grayscale had presented the conversion as “a foregone conclusion when it knew that access was never likely to happen.”
Grayscale knew that such promotion of the conversion was false but continued nonetheless, all while the SEC had been rejecting the possibility of any conversion for a Bitcoin commodity fund since 2020. Osprey claimed that the statements in emails, Twitter, media appearances, and press releases were all filled with untrue information.
Source: https://www.thecoinrepublic.com/2023/01/31/osprey-sues-grayscale-misrepresenting-gbtc-etf-approvals/