Osprey Plans Bitcoin ETF Turnover After Bitwise Bid Fails
Osprey Funds has announced its intention to turn the bitcoin trust into an exchange-traded fund, making a strategic pivot after the acquisition deal fell through. Bitwise asset management.
The planned conversion of 186.7 million dollars Osprey Bitcoin Trust It comes in the midst of growing competition bitcoin ETF market, as established players compete for market share following the Securities and Exchange Commission’s approval of spot bitcoin products last year.
The Fairfield, Connecticut-based firm plans to file a Form S-1 registration statement with the SEC in late January. advertisement from the company on Tuesday.
The move follows the termination of Osprey’s asset purchase agreement with BitWiz due to its failure to obtain necessary regulatory approvals on December 31. advertisement From the company released on the same day.
The ETF’s conversion strategy represents a change from March 2023, when Osprey considered selling or liquidating the trust after units were sold at a discount to bitcoin prices.
OBTC currently tracks the price of bitcoin using the CoinMetrics CMBI Bitcoin Index as a benchmark for performance, and the underlying bitcoin is used as a custodian by Fidelity Digital Asset Services, he said. Filing with the SEC. Trust has seen unit prices increase by 158% compared to last year.
However, the fund’s performance has not been without its challenges. Since starting at $50 in February 2021, OBTC is now trading at $30.54.
The conversion test follows similar activities in the crypto investment space, including recent conversions Greyscale’s Bitcoin Trust ETF (GBTC) In January 2024.
While pursuing the ETF conversion, Osprey will continue its ongoing lawsuit against Grayscale, which was filed in January 2023. The lawsuit alleges that Grayscale’s advertising misled investors about the possibility of a trust ETF, which in turn allowed it to dominate the bitcoin trust market.
Read more: Osprey filed claims that Grayscale wronged investors in the latest suit
The announcement comes as the SEC reviews various crypto fund applications, with the most recent ruling coming Tuesday. Extend the review period For Bitwise 10 Crypto Index Fund until March 5th.
