Osprey Funds, an funding administration agency primarily based in Fairfield, Connecticut, has introduced its intention to transform the Osprey Bitcoin Belief (OBTC) right into a spot Bitcoin exchange-traded fund (ETF).
The choice follows the termination of a deal for Bitwise Asset Administration to accumulate OBTC’s belongings.
In an announcement on January 14, Osprey revealed plans to file a Type S-1 registration assertion with the U.S. Securities and Alternate Fee (SEC) “as quickly as practicable.”
Osprey CEO Optimistic About Submitting for Bitcoin ETF Conversion
Osprey’s CEO Greg King expressed optimism about submitting the shape by the tip of January.
“We’re dedicated to getting our traders right into a Bitcoin ETF. This looks like the surest path at this level,” King acknowledged.
OBTC, launched in February 2021, was initially positioned as a competitor to the Grayscale Bitcoin Belief (GBTC).
The fund tracks Bitcoin’s value with out straight holding the cryptocurrency and presently manages $181 million in belongings.
Whereas OBTC has seen a 151% value enhance over the previous yr, it stays under its $50 all-time excessive reached at launch.
Half 2 $OBTChttps://t.co/rCgBotZO06 https://t.co/Nl69tyZen9
— Greg King, CFA (@GregoryDKing) January 14, 2025
The choice to pursue an ETF conversion follows the collapse of a proposed acquisition by Bitwise.
The deal, introduced in August 2024, allowed for termination after December 31, 2024, if regulatory approvals weren’t secured.
Osprey’s announcement comes amid rising momentum within the ETF market, with the SEC not too long ago approving Bitcoin and Ether ETFs from Hashdex and Franklin Templeton.
At the moment, 32 Bitcoin ETFs commerce within the U.S., although solely 11 are spot Bitcoin ETFs, based on VettaFi.
Osprey’s OBTC closed its final buying and selling session with a 3% enhance, reaching $29.84.
The agency, nonetheless, has confronted challenges within the extremely aggressive crypto asset market.
In January 2023, Osprey filed a lawsuit towards Grayscale, alleging deceptive promoting and anti-competitive practices that allowed Grayscale to dominate the Bitcoin OTC belief market. This lawsuit stays unresolved.
Osprey additionally explored choices to promote or liquidate OBTC in March 2024, citing the fund’s models buying and selling at a reduction to Bitcoin’s worth.
Regardless of these hurdles, the agency seems decided to place OBTC as a spot Bitcoin ETF, a transfer aimed toward capitalizing on the rising demand for regulated Bitcoin funding merchandise.
US Spot Bitcoin ETFs See Over $35B in Inflows in 2024
As reported, spot Bitcoin ETFs in america recorded a outstanding $35.66 billion in web inflows in 2024, considerably exceeding early trade projections.
BlackRock’s iShares Bitcoin Belief ETF (IBIT) led the market with $37.31 billion in inflows, adopted by Constancy’s Sensible Origin Bitcoin Fund (FBTC) with $11.84 billion, and ARK’s 21Shares Bitcoin ETF (ARKB) with $2.49 billion.
Different vital contributors included the Bitwise Bitcoin ETF (BITB), which reported $2.19 billion in inflows.
These figures far surpassed Galaxy Digital’s preliminary $14 billion first-year estimate.
Nevertheless, Bitcoin ETFs confronted a slight downturn towards the yr’s finish, with $1.33 billion in outflows since Dec. 19.
On the Ether ETF entrance, BlackRock’s iShares Ethereum Belief ETF (ETHA) and Constancy Ethereum Fund (FETH) led inflows with $3.52 billion and $1.56 billion, respectively.
Grayscale’s low-fee Ethereum Mini Belief ETF (ETH) secured $608.1 million in inflows, whereas the Bitwise Ethereum ETF (ETHW) crossed $400 million.
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