US-based Osprey Funds is preparing to convert its Bitcoin fund into an exchange-traded fund after a takeover deal with Bitwise fell through.

The investment management company said on January 14 statement It will file a Form S-1 with the SEC “as soon as possible” to convert the Osprey Bitcoin Trust (OBTC) into an ETF.

Launched in February 2021, OBTC provides investors with exposure to Bitcoin without the complexities of direct investing, such as managing portfolios or keys. The fund carries a management fee of 0.49%, making it one of the lowest-cost solutions of its kind.

As of January 7, 2025, OBTC had approximately $186.7 million in assets under management, with each share representing approximately 0.000326 BTC.

The decision to convert OBTC into an exchange-traded fund (ETF) comes after the proposed offering has been finalized Asset purchase agreement With Bitwise. The deal was announced in August 2024, and aims to move OBTC assets into the Bitwise Wallet, providing unitholders with exposure to Bitcoin through Bitwise Bitcoin shares.

However, as the December 31 regulatory deadline passed without the necessary approvals being obtained, the deal was concluded Fell throughWhich forced both parties to move away.

Trust began Explore different strategic optionswhich included the aforementioned Bitwise deal, after OBTC began trading at a notable discount to the value of its underlying Bitcoin assets, raising concerns among shareholders.

If approved, the Osprey will join expansion US ETF market, which now includes 32 Bitcoin ETFs. Of these funds, 11 Bitcoin ETFs collectively manage about $109 billion in assets as of January 15, alone. One year after first approval.

Franklin Templeton and Hashdex also have them Fired ETFs provide exposure to Bitcoin and Ether indices, making them attractive to investors looking for diversified strategies. Meanwhile, Bitwise did just that Suggested The ETF focuses on publicly traded companies that have more than 1,000 BTC in their vaults.