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Osprey Funds Plans to Convert Bitcoin Trust (OBTC) into an ETF
January 15, 2025 – In a surprising move, Osprey Funds has announced its intention to convert the Osprey Bitcoin Trust (OBTC) into a spot Bitcoin exchange-traded fund (ETF). The decision comes after the firm terminated acquisition talks with Bitwise Asset Management due to regulatory challenges.
As of January 14, 2025, Osprey Funds will file a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) in pursuit of this conversion. This development is significant, considering that OBTC manages an impressive $181 million in assets under management.
The move marks a strategic shift for Osprey Funds to align with the evolving regulatory landscape and investor demand for more accessible Bitcoin investment vehicles. Notably, this decision follows the termination of acquisition talks with Bitwise Asset Management, which had aimed to acquire OBTC’s assets. The deal was abandoned after failing to secure regulatory approvals within the agreed timeframe.
Launched in February 2021, OBTC offers investors exposure to Bitcoin without the complexities associated with direct investment, such as managing wallets or keys. In light of this conversion plan, Osprey Funds is poised to join a growing number of firms entering the Bitcoin ETF market.
The success of this conversion is contingent upon SEC approval, which has historically been rigorous for cryptocurrency-related financial products. The company’s announcement underscores the dynamic nature of the cryptocurrency investment sector as firms adapt to regulatory developments and market trends to meet investor needs.
Please note that any forward-looking statements contained in this article are subject to change based on various factors.
Source: www.crypto-news.net
