Osprey seeks SEC nod for Bitcoin Trust ETF conversion
Osprey Funds aims to boost liquidity and reduce fees through Bitcoin Trust ETF conversion amid industry challenges.
Key Takeaways
- Osprey Funds is seeking SEC approval to convert its Bitcoin Trust into an ETF.
- The conversion would provide enhanced liquidity and fee reductions for investors.
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Osprey submitted a draft registration statement to the Securities and Exchange Commission to convert its Osprey Bitcoin Trust (OBTC) into an exchange-traded fund, the company announced today.
The move follows the termination of Osprey’s acquisition deal with Bitwise, which would have transferred OBTC’s assets to Bitwise’s ETF (BITB) but failed to secure regulatory approval.
OBTC, which currently tracks Bitcoin prices using the Coin Metrics CMBI Bitcoin Index, holds $181 million in assets under management as of January 2025.
While OBTC’s unit price has increased over the past year, it remains below its launch-time peak.
Greg King, CEO of Osprey Funds, views ETF conversion as the “surest path” forward for the company’s Bitcoin investment offerings.
The proposed conversion aims to provide enhanced liquidity, broader accessibility, and potential fee reductions through the ETF structure.
The development occurs while Osprey maintains an ongoing lawsuit against Grayscale, alleging misleading advertising regarding Grayscale’s trust-to-ETF conversion prospects.
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