Osprey Funds is suing Grayscale Investments for false and misleading advertising regarding the conversion of its GBTC trust into a spot Bitcoin ETF.

Crypto asset investment firm Osprey Funds is the latest entity to file a lawsuit against Grayscale Investments over its Bitcoin Trust (GBTC).

Osprey filed the suit in Connecticut’s Superior Court on Monday, accusing Grayscale of engaging in ‘deceptive acts and unfair competition.’ The firm also accused Grayscale of implying that GBTC will eventually be converted into an Exchange Traded Fund (ETF).

‘Grayscale has made materially false and misleading statements in its advertising and promotion to the effect and in substance that turning its bitcoin asset management services into access to a bitcoin ETF was a foregone conclusion when it knew that access was never likely to happen,’ the complaint explained.

Osprey added that Grayscale’s ‘unfair trade practices’ allowed the firm to lock 99.5% of its assets under management in trust-based crypto products despite GBTC’s fee being four times higher than what Osprey is offering.