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Osprey Funds has submitted a draft registration statement to the Securities and Exchange Commission (SEC) to convert its Osprey Bitcoin Trust (OBTC) into an exchange-traded fund (ETF). The move comes after the termination of Osprey's acquisition deal with Bitwise, which would have transferred OBTC's assets to Bitwise's ETF (BITB) but failed to secure regulatory approval.
OBTC, which currently tracks Bitcoin prices using the Coin Metrics CMBI Bitcoin Index, holds $181 million in assets under management as of January 2025. While OBTC's unit price has increased over the past year, it remains below its launch-time peak. Greg King, CEO of Osprey Funds, views ETF conversion as the "surest path" forward for the company's Bitcoin investment offerings.
The proposed conversion aims to provide enhanced liquidity, broader accessibility, and potential fee reductions through the ETF structure. The development occurs while Osprey maintains an ongoing lawsuit against Grayscale, alleging misleading advertising regarding Grayscale's trust-to-ETF conversion prospects.

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