Bitcoin ETF

Bitcoin

Osprey Bitcoin Trust announced on March 5 that it is in talks on its sale or merger. If the talks are fruitless, the trust will deregister and be liquidated in 180 days.
Osprey <a href="https://www.businesswire.com/news/home/20240305394342/en/Osprey-Bitcoin-Trust-Announces-Exploration-of-Strategic-Alternatives-and-Voluntary-Deregistration" target="_blank" rel="noopener noreferrer nofollow">said</a> it was aware that fractional units of the BTC trust were trading at a discount to the value of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>). It was considering options for “alternatives to maximize unitholder value.” The announcement was enough to give the unit price a significant boost, however. After closing at $15.98 on March 4, the unit reached $20.68 on March 5 before declining to $19.17 at the time of writing.
Osprey founder and CEO Greg King shared the company’s efforts to achieve positive financial results on X (formerly Twitter). The company <a href="https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001767057/000149315224002000/form8-k.htm" target="_blank" rel="noopener noreferrer nofollow">filed</a> Form 8-K with the United States Securities and Exchange Commission (SEC) on Jan. 11 to inform the agency of its intention to hold a tender for the purchase for cash of 20% of its units at the net asset value, minus taxes and fees. King <a href="https://twitter.com/GregKingOsprey/status/1745945054479527950" target="_blank" rel="noopener noreferrer nofollow">wrote</a>:
<blockquote>
 “To be clear, the ‘tender offer’ can also be considered a redemption program. US regs require it be filed as a ‘tender offer’. Any eligible $OBTC shareholder who follows the rules receives NAV less the fee at the conclusion of the tender as described.”
</blockquote>
That tender proposal did not receive the reaction Osprey was hoping for, King <a href="https://twitter.com/GregKingOsprey/status/1755976720845324640" target="_blank" rel="noopener noreferrer nofollow">wrote</a> on X on Feb. 9:
<blockquote>
 “Hey all, we were very disappointed with the answers we got back on the tender. Makes no sense to us. Par for the course these days in Washington I guess...”
</blockquote>
King did not elaborate on the answers he referred to but said Osprey was looking for “alternatives.”
<figure><img src="https://s3.cointelegraph.com/uploads/2024-03/59effad3-f4ae-46a6-a8ef-6febfa6adf0e.png">
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Osprey <a href="https://cointelegraph.com/news/gbtc-has-a-new-a-competitor-in-the-otc-bitcoin-trust-market" rel="noopener noreferrer nofollow">was a competitor to the much larger Grayscale</a> when it debuted its <a href="https://cointelegraph.com/explained/crypto-otc-trading" rel="noopener noreferrer nofollow">over-the-counter</a> BTC trust in January 2021. It offered accredited investors exposure to BTC within brokerage accounts. The crypto winter took a heavy toll on the trust, which <a href="https://cointelegraph.com/news/crypto-asset-manager-osprey-funds-lays-off-most-of-its-staff-report" rel="noopener noreferrer nofollow">had laid off the majority</a> of its employees by January 2023.
Related: <a href="https://cointelegraph.com/news/grayscale-new-spot-bitcoin-etf-nyse" rel="noopener noreferrer nofollow">Grayscale files for new spot Bitcoin ETF on NYSE Arca</a>
Osprey <a href="https://cointelegraph.com/news/osprey-sues-grayscale-alleging-unfair-ads-and-promos-for-etf-blocked-by-sec" rel="noopener noreferrer nofollow">sued Grayscale later in January 2023</a>, claiming “Only because of its false and misleading advertising and promotion has Grayscale been able to maintain to date approximately 99.5% market share in a two-participant market.”
Osprey also offers over-the-counter Polkadot (<a href="https://cointelegraph.com/polkadot-price-index" rel="noopener noreferrer nofollow">DOT</a>) and Solana (<a href="https://cointelegraph.com/solana-price-index" rel="noopener noreferrer nofollow">SOL</a>) trusts and a private placement BNB Chain Trust (<a href="https://cointelegraph.com/binance-coin-price-index" rel="noopener noreferrer nofollow">BNB</a>).
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-60k-us-govt-moves-seized-btc-sbf-sentencing-hodlers-digest-feb-25-march-2/" rel="noopener noreferrer nofollow">Bitcoin breaks $60K, US gov’t moves seized BTC, and more: Hodler’s Digest, Feb. 25 – March 2</a>

Osprey ready to sunset its OTC Bitcoin trust by sale, merger or liquidation

Cointelegraph

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