Osprey's OTC Bitcoin Trust: Time to Make a Move? 🌅

Osprey Bitcoin Trust Considers Strategic Alternatives

In a recent statement, Osprey Bitcoin Trust (OBTC) announced that it is exploring strategic alternatives such as selling the Trust or merging with an existing Bitcoin ETF. The decision comes as a result of the Trust’s units trading at a fraction of the cost of Bitcoin.

Potential Outcomes

If a sale or merger deal cannot be reached, the Trust plans to liquidate and dissolve within the next 180 days by filing Form 15 with the US Securities and Exchange Commission (SEC).

Despite the uncertainty surrounding the Trust’s future, the announcement had a significant impact on its unit price, which experienced a surge before stabilizing.

Previous Efforts and Challenges

Previously, Osprey Bitcoin Trust attempted a tender offer to purchase 20% of its units at the net asset value, but faced criticism and challenges from Washington politics.

CEO Greg King expressed disappointment with the tender proposal’s reception and its classification as a redemption program.

Osprey vs. Grayscale

Prior to this latest announcement, Osprey had explored the possibility of managing Grayscale’s Bitcoin trust. However, Osprey’s own trust faced difficulties and layoffs during the crypto winter, leading to a legal dispute with Grayscale over alleged false and misleading advertising.

Hot Take: Osprey Bitcoin Trust Faces Strategic Decisions

Osprey Bitcoin Trust is weighing its options to address the discounted price of its units compared to Bitcoin, including selling the Trust or merging with an existing Bitcoin ETF. If these alternatives are not feasible, the Trust plans to liquidate and dissolve within the next 180 days.

Previous efforts, such as a tender offer, were met with challenges and criticism. Osprey had also considered taking over management of Grayscale’s Bitcoin trust but faced difficulties of its own during the crypto winter, leading to a legal dispute.

Ultimately, Osprey’s strategic decisions will shape the future of its Bitcoin Trust and its ability to provide value to investors.