Osprey Bitcoin Trust, a Delaware statutory trust, has acknowledged that its units are trading at a discount to Bitcoin’s value.

The trust’s sponsor, Osprey Funds, LLC, is exploring strategic options to enhance unitholder value, including a potential sale or merger with a Bitcoin ETF.

If unsuccessful, the sponsor plans to liquidate the trust within 180 days. Additionally, the trust intends to terminate the registration of its units under the Securities Exchange Act of 1934 by filing a Form 15 with the SEC.

This will suspend its obligation to file specific reports. The trust expects deregistration to become effective 90 days after filing. While quoted on the OTCQX, the Trust will adhere to its alternative reporting standard.

Osprey Bitcoin Trust emerged as a competitor to the larger GBTC fund managed by Grayscale, which recently transitioned into an ETF. Osprey initiated legal action against Grayscale, alleging deceptive claims regarding the certainty of its ETF conversion.