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

Digital asset manager Osprey Funds has filed a suit in a U.S. court against Grayscale Investments, operator of the world’s largest Bitcoin trust, claiming that the firm misrepresented the likelihood that the trust could ever become an exchange-traded fund (ETF).

Osprey Funds is the latest digital assets-focused investment manager vying to take over management of Grayscale’s bitcoin trust (GBTC) as public pressure against the troubled vehicle continues to mount.

Digital asset manager Osprey Funds has reportedly laid off most of its staff since the summer, underscoring the ongoing operational challenges posed by crypto’s enduring bear market.