Key Points
- Osprey Funds may liquidate its Bitcoin trust if it cannot merge with an exchange-traded fund (ETF).
- The firm is considering various options and is in discussions about a potential sale or merger with an existing Bitcoin ETF.
Digital asset management firm, Osprey Funds, has disclosed that it might need to liquidate its Bitcoin trust if it fails to find an ETF for a merger or sale.
The company explained that the common units of its Bitcoin trust are currently trading at a discount to the actual value of Bitcoin.
Osprey Funds’ Options
Osprey Funds is actively considering a wide range of options and is currently in discussions about a potential sale or merger with an existing Bitcoin ETF.
If unsuccessful, the firm has stated it will be forced to liquidate and dissolve the trust within 180 days. The company, however, declined to disclose the ETF providers it is currently in talks with.
Bitcoin’s Rising Popularity
Osprey Funds’ consideration of options for its Bitcoin trust comes at a time when Bitcoin’s popularity is on the rise.
The world’s most popular cryptocurrency recently hit a record high, surpassing $69,000. Spot Bitcoin ETFs have also been generating billions of dollars in trading volume, with products offered by Grayscale, BlackRock, and Fidelity leading the pack.
Just over a year ago, before spot Bitcoin ETFs gained approval and started trading, Osprey Funds filed a lawsuit against Grayscale. The firm accused Grayscale of misleading people by claiming that its product would be converted to an ETF, despite regulatory rejection of this possibility.
However, Grayscale eventually did convert the fund, and it began trading as a spot ETF in January.
