Osprey Bitcoin Trust Material Event - What Happened

Hey everyone, let's break down some important news about the Osprey Bitcoin Trust (OBTC). If you're invested in it, or just curious about how these crypto funds work, this is for you. We're going to cut through the financial jargon and get straight to what you need to know.

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1. What happened? (The actual event, in plain English)

Alright, so here's the scoop: Osprey Bitcoin Trust is making a big move to become an exchange-traded product (ETP) and get its shares listed on the Nasdaq Stock Market LLC. This is a significant change from its previous structure.

To make this happen, Osprey Funds, LLC (the company that manages the Trust, called the "Sponsor") and CSC Delaware Trust Company (the "Trustee") signed a new agreement. This agreement updates how the Trust operates in a few key ways:

• New Management Fee: They've set a clear management fee of 0.49% per year. This fee is calculated daily and paid monthly to the Sponsor. What's more, this 0.49% fee now covers all the routine operational costs of the Trust, including fees for the Trustee, administrators, accountants, transfer agents, custodians, listing exchange fees, SEC registration, printing, mailing, tax reporting, audit, license, and ordinary legal fees.
• New Share Creation/Redemption Process: Shares will now only be created or redeemed in large blocks (called "Baskets") of 10,000 shares or more. This process will involve "authorized participants" (usually large financial institutions) exchanging actual Bitcoin or cash for these share blocks, or vice-versa.

2. When did it happen?

The new agreement, called the "Third Amended and Restated Declaration of Trust and Trust Agreement," was entered into on December 18, 2025. The public filing announcing this event was made on December 23, 2025.

3. Why did it happen? (The backstory and context)

This major shift is all about transforming the Osprey Bitcoin Trust into a more modern, accessible, and competitive investment vehicle.

• Becoming an ETP and Listing on Nasdaq: This move is designed to make OBTC behave more like a traditional stock or a spot Bitcoin ETF (Exchange Traded Fund). ETFs are very popular because they trade easily on stock exchanges throughout the day, offering better liquidity and often tighter pricing compared to older trust structures.
• Competitive Landscape: The crypto investment space, especially for Bitcoin, has become much more competitive. With the recent approval of several spot Bitcoin ETFs, Osprey is likely positioning itself to compete directly with these new products. By becoming an ETP and listing on Nasdaq, they aim to attract more investors who prefer the ease and familiarity of trading on a major stock exchange.
• Transparent Fee Structure: The new 0.49% management fee, which covers almost all routine operational costs, is a very competitive rate in the current market for Bitcoin investment products. This transparency and lower all-in cost are designed to make OBTC more attractive.
• Improved Price Tracking: The new "basket" creation and redemption mechanism is a standard feature of ETFs. It helps ensure that the price of OBTC shares on the market stays very close to the actual value of the Bitcoin it holds (its Net Asset Value, or NAV). This is a big deal because older trust structures often traded at significant premiums or discounts to their NAV.

4. Why does this matter? (The "So What?")

This isn't just some boring corporate announcement; it could actually change how people invest in Bitcoin through Osprey and potentially affect the value of your shares.

• Easier Trading & Better Liquidity: Listing on Nasdaq means OBTC shares will be much easier to buy and sell throughout the trading day, just like regular stocks. This increased liquidity can make it more attractive to a wider range of investors.
• Tighter Price Tracking: The new creation/redemption process is designed to keep OBTC's share price closely aligned with the actual price of Bitcoin. This means you're less likely to buy at a big premium or sell at a big discount compared to the underlying Bitcoin value, which was a common issue with older trust structures.
• Clearer, Competitive Fees: The 0.49% annual fee is now very transparent and covers most operational costs. This is a competitive rate that could make OBTC a more cost-effective way to get Bitcoin exposure compared to some other options.
• Increased Accessibility: Being listed on Nasdaq means more brokerage platforms and investment accounts will likely offer OBTC, making it easier for everyday investors to access.

5. Who is affected?

If you own shares in Osprey Bitcoin Trust (OBTC), or if you're thinking about investing in it, this directly affects you.

• Investors in OBTC: Your investment is transitioning from a trust structure to an exchange-traded product. This means potentially better liquidity, tighter price tracking to Bitcoin's value, and a clear, competitive fee structure.
• Potential Investors: OBTC becomes a more standardized and competitive option for gaining exposure to Bitcoin, similar to a spot Bitcoin ETF.
• Osprey Management/Company: This is a major strategic pivot for Osprey Funds, LLC, aiming to enhance its competitive position and potentially grow its assets under management in the evolving crypto investment market.

6. What happens next? (Immediate and future implications)

So, what's the game plan now?

• The "Third Amended and Restated Trust Agreement" is now in effect as of December 18, 2025, formalizing these changes.
• The next major step is the actual listing of OBTC shares on the Nasdaq Stock Market LLC. This will be the point at which the new trading mechanisms and liquidity benefits become fully active.
• Osprey will likely update its official documents (like its prospectus) to fully reflect these changes, and you can expect more announcements as the Nasdaq listing date approaches.
• Keep an eye on Osprey's official website or their filings with the SEC for the most accurate and up-to-date information regarding the Nasdaq listing date and other operational details.

7. What should investors/traders know? (Practical takeaways)

For those of you trading or investing, here are a few things to keep in mind:

• Review Your Holdings: If you own OBTC, understand that its structure and trading characteristics are changing significantly. This is generally a positive development for investors, aiming for better liquidity and price tracking.
• Compare Options: The new 0.49% fee is competitive. How does OBTC now stack up against other spot Bitcoin ETFs or other ways to get exposure to Bitcoin (like buying Bitcoin directly)?
• Understand ETP Mechanics: Familiarize yourself with how exchange-traded products work, especially the role of authorized participants and how the creation/redemption process helps maintain price alignment with the underlying asset.
• Do Your Own Homework: Don't just take our word for it! Read the official announcements from Osprey and understand the details of the new agreement.
• Consider Your Strategy: Does this event change your long-term view on OBTC or your overall crypto investment strategy? The move to an ETP structure generally makes it a more "standard" and potentially less volatile investment vehicle in terms of its premium/discount to NAV.

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We hope this helps you understand what's going on with Osprey Bitcoin Trust. Stay informed, and happy investing!