Osprey Funds has announced its intention to convert the Osprey Bitcoin Trust (OBTC) into a spot Bitcoin ETF after its acquisition agreement with Bitwise Asset Management was terminated. The deal, first announced in August 2024, was abandoned after failing to secure necessary regulatory approvals by the December 31 deadline.
CEO Greg King stated that filing a registration statement with the U.S. Securities and Exchange Commission is now a priority, with plans to submit the Form S-1 by the end of January 2025. This move comes as the ETF market continues to grow, with the SEC recently approving Bitcoin and Ether index ETFs from Hashdex and Franklin Templeton. Currently, 32 Bitcoin ETFs are traded in the U.S., of which 11 are spot ETFs.
Osprey’s OBTC has seen significant gains over the past year, with its unit price rising 3% to $29.84 in the last trading session—marking a 151% increase in 12 months. However, the shares remain below their all-time high of $50, reached in February 2021 when the trust first launched.
Based in Fairfield, Connecticut, Osprey Funds began trading OBTC on the OTC market in early 2021. The firm previously sued Grayscale in January 2023, alleging misleading advertising that allowed Grayscale to dominate the Bitcoin OTC trust market. Osprey has also considered selling or liquidating the trust due to its units trading at a discount to Bitcoin’s value.
Source: Cointelegraph
