As a crypto investor, I’m eagerly watching the developments unfold as U.S.-based Osprey Funds prepares to transform their Bitcoin trust into an exchange-traded fund (ETF), following the collapse of the acquisition agreement with Bitwise. This potential shift could bring more institutional participation and liquidity to the crypto market.
The investment company declared on January 14th that they aim to submit a Form S-1 to the U.S. Securities and Exchange Commission at the earliest opportunity, with the intention of transforming the Osprey Bitcoin Trust (OBTC) into an Exchange Traded Fund (ETF).
Introduced in February 2021, OBTC provides investors with an opportunity to invest in Bitcoin without the intricacies involved in direct investment, such as handling wallets or private keys. This fund features a management fee of just 0.49%, placing it among the most affordable options within its category.
Come January 7, 2025, I found myself managing a substantial portfolio worth around $186.7 million under OBTC. Each unit in my possession equated to approximately 0.000326 Bitcoins.
Following the cancellation of an asset acquisition contract with Bitwise, it has been decided to transform OBTC into an Exchange Traded Fund (ETF). This move was announced in August 2024, and the original agreement sought to transfer OBTC’s assets to Bitwise, thereby allowing unitholders to gain Bitcoin exposure through shares of Bitwise Bitcoin.
Yet, with the December 31st regulatory approval not being secured by the deadline, the deal was terminated, leaving both parties no choice but to withdraw from it.
The trust deliberated on several potential strategies, one being the Bitwise agreement mentioned earlier, following OBTC’s trade at a significant disparity compared to the worth of its bitcoin assets, causing unease among shareholders due to this price discrepancy.
Given the approval, Osprey is poised to enter and contribute to the rapidly growing U.S. Exchange Traded Fund (ETF) market, now hosting 32 Bitcoin ETFs. Among these, eleven “spot” Bitcoin ETFs currently manage approximately $109 billion in assets as of January 15, following a year since the first approval.
Franklin Templeton and Hashdex are now providing Exchange-Traded Funds (ETFs) that allow investment in Bitcoin and Ether indices, which is attractive for investors who prefer diverse investment strategies. Meanwhile, Bitwise has suggested an ETF concentrating on publicly listed companies with more than 1,000 Bitcoins in their corporate reserves.
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2025-01-15 10:30