Key Insights
- Osprey Funds is pursuing SEC approval to transform its Bitcoin Trust into an ETF.
- This change aims to offer greater liquidity and lower fees for investors.
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Osprey has filed a draft registration statement with the Securities and Exchange Commission to convert its Osprey Bitcoin Trust (OBTC) into an exchange-traded fund, as announced today.
This decision follows the termination of Osprey’s merger agreement with Bitwise, which aimed to transition OBTC’s assets to Bitwise’s ETF (BITB) but did not receive the necessary regulatory approval.
As of January 2025, OBTC, which tracks Bitcoin prices via the Coin Metrics CMBI Bitcoin Index, manages assets worth $181 million.
While OBTC’s unit price has seen an upward trend over the past year, it still lags behind its initial launch peak.
Greg King, CEO of Osprey Funds, believes that converting to an ETF is the “safest route” for advancing the company’s Bitcoin investment products.
The proposed conversion is intended to enhance liquidity, increase accessibility, and potentially lower fees through the ETF structure.
This development comes amidst an ongoing lawsuit by Osprey against Grayscale, alleging deceptive marketing related to Grayscale’s trust-to-ETF conversion potential.
