Osprey Funds Seeks to Convert its Bitcoin Trust into ETF

The investment management company Osprey Funds, based in the United States, is preparing to transform its Bitcoin trust into an exchange-traded fund after the acquisition with Bitwise fell through.

In a statement released on January 14th, the firm stated its intention to file a Form S-1 with the US Securities and Exchange Commission to convert the Osprey Bitcoin Trust (OBTC) into an ETF in a timely manner.

Launched in February 2021, OBTC allows investors to gain exposure to Bitcoin without the complexities of direct investment, such as managing wallets or keys. The fund has a management fee of 0.49%, making it one of the most cost-effective solutions of its kind.

As of January 7, 2025, OBTC reported managing assets worth approximately $186.7 million, with each share representing approximately 0.000326 Bitcoin.

The decision to convert OBTC into an ETF comes after the proposed asset purchase agreement with Bitwise was terminated. The deal, announced in August 2024, aimed to transfer OBTC’s assets to Bitwise’s portfolio, providing investors with exposure to Bitcoin through Bitwise Bitcoin shares.