cryptojournalist
Osprey Funds Pushes for Spot ETF Approval
Osprey Funds is moving to convert its Osprey Bitcoin Trust (OBTC) into a spot Bitcoin exchange-traded fund (ETF). This decision follows the collapse of a deal with Bitwise Asset Management, which was canceled due to regulatory delays. CEO Greg King confirmed plans to file with the SEC by the end of January.
What is OBTC?
Launched in 2021, OBTC tracks Bitcoin’s price without holding the asset directly. It manages $181 million in assets and was once a competitor to Grayscale Bitcoin Trust, which converted to a spot ETF in early 2024.
Failed Bitwise Acquisition
Osprey’s acquisition deal with Bitwise, announced in August 2024, included a termination clause if regulatory approval wasn’t granted by Dec. 31. The deal was officially canceled after the deadline.
Spot Bitcoin ETFs Gaining Momentum
The ETF market is expanding, with the SEC recently approving Bitcoin and Ether ETFs. Of the 32 Bitcoin ETFs traded in the U.S., only 11 are spot ETFs, according to VettaFi.
OBTC Performance and Legal Battle
OBTC’s price rose 3% recently, reaching $29.84, and is up 151% over the past year, though it remains below its $50 peak from 2021. Osprey is also suing Grayscale, alleging unfair practices that gave it a monopoly in the Bitcoin OTC trust market.
Exploring Liquidation Options
In 2024, Osprey considered selling or liquidating OBTC after its units began trading below Bitcoin’s value.
