Financial company Osprey Funds has announced their intention to transform their Osprey Bitcoin Trust (OBTC) into an Exchange-Traded Fund (ETF), following the cancellation of their agreement with Bitwise.
On January 14th, the company announced that they aim to submit a Form S-1, which is a registration document, to the United States Securities and Exchange Commission at the earliest opportunity.
Initially, OBTC challenged the dominance of Grayscale Bitcoin Trust, a significantly larger entity. However, by January 2024, GBTC transformed into a regular Bitcoin Spot Exchange-Traded Fund (ETF), leaving its earlier competition with OBTC behind.
As a crypto enthusiast, I’ve been eyeing the OBTC fund. From what I understand about this investment vehicle, it doesn’t physically possess Bitcoins but rather mirrors their price movements. Currently, it manages a substantial sum of $181 million in assets, which is quite impressive.
The deal that Bitwise Asset Management had planned to acquire OBTC’s assets, which was announced in August, has now fallen through.
According to Osprey Funds, the agreement ended because the required regulatory approvals hadn’t been granted by December 31, 2024, for the parties involved.
As more companies venture into the Exchange-Traded Fund (ETF) market, with the Securities and Exchange Commission (SEC) approving Hashdex and Franklin Templeton’s Bitcoin and Ether index ETFs on December 20 last year, the spot Bitcoin ETF market has been experiencing significant growth. Here I am, an investor in the crypto sphere, eagerly observing this promising trend.
Based on data from analytics and global ETF platform VettaFi, there are a total of 32 Bitcoin ETFs being traded within the U.S. market. Out of these, only 11 are true spot Bitcoin ETFs.
Following the closing of the stock exchange, Osprey made an announcement. In the previous trading day, the unit price of OBTC increased by 3%, reaching $29.84. Moreover, over the past year, the value of OBTC has surged by more than 151%, as per Google Finance’s data.
Despite this, it’s currently lower than its peak of $50, which it reached when the trust was launched on February 12, 2021.
In February 2021, the investment firm, Osprey Funds, located in Fairfield, Connecticut, started selling its Over-the-Counter (OTC) product, known as OBTC, on the OTC market.
In January 2023, Osprey filed a lawsuit against Grayscale, alleging that their misleading marketing and promotion about the potential of their trust turning into an ETF gave them an unfair advantage in the Bitcoin Over-The-Counter (OTC) trust asset market, effectively creating a monopoly. The case is still being heard in court.
Back in March, I found myself pondering over a significant decision regarding my cryptocurrency investment trust, as the company disclosed they’d been contemplating either selling off the trust or liquidating its assets. The reason? The trust’s units were consistently trading at a lower price compared to the actual value of Bitcoin.
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2025-01-15 06:02