Osprey seeks SEC nod for Bitcoin Trust ETF conversion

Key Takeaways

Osprey Funds is in search of SEC approval to transform its Bitcoin Belief into an ETF.
The conversion would supply enhanced liquidity and charge reductions for buyers.

Osprey submitted a draft registration assertion to the Securities and Trade Fee to transform its Osprey Bitcoin Belief (OBTC) into an exchange-traded fund, the corporate introduced in the present day.

The transfer follows the termination of Osprey’s acquisition cope with Bitwise, which might have transferred OBTC’s property to Bitwise’s ETF (BITB) however did not safe regulatory approval.

OBTC, which at present tracks Bitcoin costs utilizing the Coin Metrics CMBI Bitcoin Index, holds $181 million in property below administration as of January 2025.

Whereas OBTC’s unit value has elevated over the previous 12 months, it stays under its launch-time peak.

Greg King, CEO of Osprey Funds, views ETF conversion because the “surest path” ahead for the corporate’s Bitcoin funding choices.

The proposed conversion goals to offer enhanced liquidity, broader accessibility, and potential charge reductions by means of the ETF construction.

The event happens whereas Osprey maintains an ongoing lawsuit towards Grayscale, alleging deceptive promoting concerning Grayscale’s trust-to-ETF conversion prospects.