Osprey Funds Appeals Connecticut Judge’s Ruling in Grayscale Investments Lawsuit

On Monday, March 31, 2025, cryptocurrency company Osprey Funds LLC filed a notice of appeal in response to a Connecticut state judge’s ruling against it in an unfair trade practice lawsuit. The suit accuses digital asset management firm Grayscale Investments LLC of misleading bitcoin investors regarding the security of their investments. This appeal follows the decision by Connecticut Superior Court Judge Mark T. Gould, who denied Osprey’s motion to reconsider his earlier ruling.

The notice of appeal, filed on Monday, requests an appellate review of Judge Gould’s decisions, including his granting of Grayscale Investments’ motion for summary judgment. The notice did not present Osprey’s arguments for the appellate court, and no brief had been submitted to the Connecticut Appellate Court.

Osprey Funds’ lawsuit claimed that Grayscale Investments engaged in false advertising and misled investors by exaggerating its capability to convert a bitcoin management trust into an exchange-traded fund (ETF). Osprey argued that these alleged misrepresentations allowed Grayscale to capture a larger share of the cryptocurrency market by misleading investors regarding the safety and viability of their investments.

Judge Gould’s ruling in favor of Grayscale stated that the Connecticut Unfair Trade Practices Act did not apply to Osprey’s claims. In its subsequent motion to reargue, Osprey Funds contended that the judge’s interpretation of the statute’s exceptions extended beyond the intended scope established by the state legislature.

Please contact BlockTribune for access to a copy of this filing.