After nearly two years of back and forth in court, Grayscale Investments and Osprey Funds have finally decided to settle their legal dispute. The issue was all about how Grayscale promoted its Bitcoin investment product, and Osprey wasn’t happy about it.

On April 9, 2025, a filing in a Connecticut court confirmed that both companies have agreed to settle. They’re now working on the final paperwork, and once that’s done, Osprey will officially drop its appeal. The details of the settlement haven’t been shared publicly, but it looks like everything should be wrapped up within about 45 days.

This legal drama began in January 2023 when Osprey sued Grayscale. Osprey claimed that Grayscale was unfairly advertising its Grayscale Bitcoin Trust (GBTC), making it sound like it would definitely become a spot Bitcoin ETF—even though regulators hadn’t approved it at the time. Osprey felt this gave Grayscale an edge in the market, especially since Osprey saw itself as the only real competition.

A big part of the case focused on Grayscale’s push to turn GBTC into a spot ETF. That’s a big deal in the crypto world because it makes investing in Bitcoin easier for regular people. The SEC originally said no to the change, but a court later told them to take another look. Eventually, in January 2024, the SEC gave it the green light. GBTC officially became a spot ETF and started trading on the NYSE Arca exchange.

Still, Osprey didn’t give up. In early 2024, a judge ruled that Osprey’s claims didn’t qualify under state law. Just a few days later, Osprey pushed back, saying the judge made the decision too soon—before all the facts and evidence were gathered. They also argued that the judge didn’t properly consider how deceptive advertising is treated under state versus federal rules.

But despite their efforts, things continued to lean in Grayscale’s favor. Eventually, both companies agreed it was better to settle than to keep fighting it out in court.

Now that the dust has settled, this marks the end of one of the more talked-about legal battles in the crypto space. It also shows how competitive the world of Bitcoin ETFs has become, with big and small firms racing to get ahead.

Grayscale’s GBTC is still one of the biggest Bitcoin investment tools in the U.S., and turning it into a spot ETF was a big win for them. As for Osprey, while the case didn’t end in their favor, it brought attention to the challenges that smaller players face when competing with bigger firms.

In the bigger picture, this case reflects a lot of what’s happening in crypto right now—fast changes, tight competition, and the growing need for clear rules and fair practices. As more traditional financial tools, like ETFs, start including digital assets like Bitcoin, the line between crypto and mainstream finance is getting thinner. This brings more attention from investors, regulators, and competitors. It also means companies need to be extra careful with how they promote their products and follow legal guidelines. With this legal fight now behind them, both Grayscale and Osprey can move forward—Grayscale with its newly approved spot Bitcoin ETF and Osprey with lessons learned and a chance to refocus its strategy. Both firms now have an opportunity to shape their roles in the fast-growing and constantly shifting world of crypto investing.