Osprey Bitcoin Trust eyes sale or merger with ETF to avoid liquidation
Osprey Funds is looking to sell, or merge, its bitcoin trust in order to avoid having to liquidate or dissolve the trust.The firm said “the common units of fractional undivided beneficial interest of the trust are trading at a discount to the value of bitcoin.”
Digital asset manager Osprey Funds announced that it may have to liquidate its bitcoin trust if it can't find an exchange-traded fund to rescue it.
"The common units of fractional undivided beneficial interest of the [Osprey Bitcoin BTC -4.15% Trust] are trading at a discount to the value of bitcoin," the company said in a statement. Osprey Funds also stated that it "plans to consider a wide range of options, and is in various discussions about a potential sale of the trust to, or merger with, an existing bitcoin ETF."
If Osprey Funds is unsuccessful it said it will "liquidate and dissolve the trust within 180 days." The firm declined to comment further when asked what ETF providers the firm was in discussions with.
Osprey Funds exploring options with regards to its bitcoin trust comes at a unique time as the price of the world's most popular cryptocurrency briefly hit an all-time on Tuesday, surpassing $69,000. Additionally, spot bitcoin ETFs have been generating billions of dollars in trading volume with the products offered by Grayscale, BlackRock and Fidelity leading the way.
A little more than a year ago, before spot bitcoin ETFs gained approval and started trading, Osprey Funds sued Grayscale , accusing the firm of “misleading” people by saying that its product would be converted to an exchange-traded fund, despite regulators having rejected that as a possibility. Grayscale eventually did convert the fund and it began trading as a spot ETF in January.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
New spot margin trading pair — HOLO/USDT!
FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn
- FUN plunged 32.34% in 24 hours to $0.008938, marking a 541.8% monthly loss amid prolonged bearish trends. - Technical breakdowns, elevated selling pressure, and forced liquidations highlight deteriorating market sentiment and risk-off behavior. - Analysts identify key support below $0.0080 as critical, with bearish momentum confirmed by RSI (<30) and MACD indicators. - A trend-following backtest strategy proposes short positions based on technical signals to capitalize on extended downward trajectories.
OPEN has dropped by 189.51% within 24 hours during a significant market pullback
- OPEN's price plummeted 189.51% in 24 hours to $0.8907, marking its largest intraday decline in history. - The token fell 3793.63% over 7 days, matching identical monthly and yearly declines, signaling severe bearish momentum. - Technical analysts cite broken support levels and lack of bullish catalysts as key drivers of the sustained sell-off. - Absence of stabilizing volume or reversal patterns leaves the market vulnerable to further downward pressure.
New spot margin trading pair — LINEA/USDT!
Trending news
MoreCrypto prices
More
