Osprey Funds to seek SEC approval to convert Bitcoin trust into ETF
Osprey Funds has announced plans to convert its Osprey Bitcoin Trust (OBTC) into an exchange-traded fund (ETF) following the termination of its acquisition by Bitwise due to regulatory approval failures. The firm intends to file a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) as soon as practicable. Currently, OBTC tracks Bitcoin's price without holding the cryptocurrency itself, managing assets worth $181 million. Despite a strong performance last year, with a 151% increase and a unit price rise to $29.84, it remains below its all-time high of $50 from February 2021. The decision comes amidst growing interest in ETFs, as the SEC approved several Bitcoin and Ether index ETFs in late 2024, amidst a competitive backdrop of 32 Bitcoin ETFs currently traded in the U.S., of which only 11 are spot ETFs. Osprey, which began trading OBTC in February 2021, faced challenges including an ongoing lawsuit regarding its advertising practices related to ETF conversion expectations.
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