Osprey Seeks SEC Approval for Bitcoin ETF
Osprey Funds Targets Bitcoin ETF Conversion
Osprey Funds has submitted a draft registration statement to the Securities and Exchange Commission (SEC) to convert its Osprey Bitcoin Trust (OBTC) into an exchange-traded fund (ETF). This announcement follows the termination of Osprey’s acquisition deal with Bitwise, which failed to gain regulatory approval.
Key Takeaways:
- Osprey seeks SEC approval for OBTC ETF conversion.
- Conversion aims to enhance liquidity and reduce fees.
OBTC, currently tracking Bitcoin prices using the Coin Metrics CMBI Bitcoin Index, held $181 million in assets under management as of January 2025. While its unit price has risen over the past year, it remains below its initial peak. Osprey Funds CEO, Greg King, believes ETF conversion is the most reliable path forward for the company's Bitcoin investment products.
The proposed conversion is expected to deliver several advantages:
- Increased Liquidity: ETFs generally offer better liquidity than trusts.
- Wider Accessibility: ETFs are more easily accessible to a broader range of investors.
- Potential Fee Reductions: The ETF structure may lead to lower fees for investors.
This development comes as Osprey continues its lawsuit against Grayscale, alleging misleading advertising concerning Grayscale's own trust-to-ETF conversion efforts.
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