Osprey Funds is making headlines with its plan to seek approval from the Securities and Exchange Commission (SEC) to transform its Bitcoin Trust into an exchange-traded fund (ETF). This shift is designed to improve liquidity for investors and lower the fees associated with the trust.
Strategic Shift Towards ETF Structure
The company has submitted a draft registration statement to the SEC regarding the Osprey Bitcoin Trust (OBTC), marking a significant strategic pivot towards the ETF structure. This move follows the recent abandonment of a merger with Bitwise, which aimed to integrate OBTC’s assets into Bitwise’s ETF, known as BITB. Unfortunately, the merger was unable to secure the regulatory approval it required.
Current Status of Osprey Bitcoin Trust
As of January 2025, OBTC, which monitors Bitcoin’s price using the Coin Metrics CMBI Bitcoin Index, boasts approximately $181 million in assets. Although the unit price of OBTC has climbed over the past year, it still hasn’t returned to the peaks observed at its launch.
Legal Dispute and Commitment to Transparency
Greg King, the CEO of Osprey Funds, firmly believes that transitioning to an ETF is the most effective strategy for advancing the company’s Bitcoin offerings. This proposed change is expected to not only enhance liquidity and accessibility for investors but also to potentially reduce fees by capitalizing on the advantages offered by the ETF format.
This announcement comes in the midst of an ongoing legal dispute in which Osprey is contesting claims made by Grayscale. Osprey argues that Grayscale’s statements regarding the potential for transforming its trust into an ETF are misleading. Through this legal challenge, Osprey emphasizes its commitment to creating a transparent and investor-friendly environment in the Bitcoin investment landscape.
Source: CryptoBriefing
