Key Takeaways:
Osprey Funds plans to transform its Bitcoin Belief (OBTC) right into a spot Bitcoin ETF, submitting a Type S-1 with the SEC.The choice follows terminated acquisition talks with Bitwise Asset Administration because of regulatory challenges.OBTC, managing $181M, goals to affix a rising Bitcoin ETF market contingent on SEC approval.
Osprey Funds, an funding administration agency primarily based in Fairfield, Connecticut, introduced on January 14, 2025, its intention to transform the Osprey Bitcoin Belief (OBTC) right into a spot Bitcoin exchange-traded fund (ETF). Accordingly, the agency plans to file a Type S-1 registration assertion with the U.S. Securities and Change Fee (SEC) in pursuit of this conversion.
Notably, this choice follows the termination of acquisition talks with Bitwise Asset Administration, which had aimed to amass OBTC’s belongings. The deal was known as off after failing to safe regulatory approvals throughout the agreed timeframe.
OBTC, launched in February 2021, provides traders publicity to Bitcoin with out the complexities of direct funding, akin to managing wallets or keys. As of now, the fund manages roughly $181 million in belongings.
Osprey Funds: Dedication to ETF Conversion
The transfer comes amid a rising variety of companies coming into the Bitcoin ETF market. As of December 2024, the SEC had authorized a number of Bitcoin and Ether index ETFs, contributing to vital development within the spot Bitcoin ETF market. Presently, 32 totally different Bitcoin ETFs are traded within the U.S., with 11 being spot Bitcoin ETFs.
Osprey Funds beforehand competed with bigger entities like Grayscale Bitcoin Belief, which transformed to a spot Bitcoin ETF in January 2024. In January 2023, Osprey sued Grayscale, alleging deceptive promoting relating to the probability of its belief changing into an ETF, a case that is still ongoing.
The agency’s choice to pursue an ETF conversion displays a strategic shift to align with the evolving regulatory panorama and investor demand for extra accessible Bitcoin funding automobiles. The success of this conversion is contingent upon SEC approval, a course of that has been traditionally rigorous for cryptocurrency-related monetary merchandise.
Osprey’s announcement underscores the dynamic nature of the cryptocurrency funding sector, as companies adapt to regulatory developments and market developments to fulfill investor wants.
