Bitcoin Trust Eyes Stock Exchange Debut for Easy Crypto Bets
Published Date: 4/2/2025
Notice
Summary
The Cboe BZX Exchange wants to start listing and trading shares of the Osprey Bitcoin Trust, a fund tied to Bitcoin’s price. This change lets investors buy and sell these shares on the exchange, making Bitcoin investing easier and more accessible. The SEC is reviewing this proposal and asking for public comments before it goes live.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 3 costs, 0 mixed.
Osprey Bitcoin Trust Shares May Trade on BZX
The Cboe BZX Exchange filed to list and trade shares of the Osprey Bitcoin Trust as Commodity-Based Trust Shares under BZX Rule 14.11(e)(4). If approved, investors will be able to buy and sell the Trust's Shares on the national exchange like other exchange-traded products.
NAV, IIV, and Premium/Discount Risk
The Trust's Net Asset Value (NAV) will be calculated once per business day (promptly after 4:00 p.m. ET) and disseminated daily; an Intraday Indicative Value (IIV) will update every 15 seconds during Regular Trading Hours (9:30 a.m. to 4:00 p.m. ET) but is not the real-time NAV. You may buy or sell Shares during the day at a market price that can trade at a premium or discount to that NAV.
Sponsor Says Listing Could Unlock $10.35M Value
The Sponsor reports the Trust had approximately $161 million in assets under management as of February 27, 2025, and states that converting the Trust to an exchange-traded product could 'unlock over $10,352,000' of value for shareholders, based on a 6.43% discount observed as of February 26, 2025.
Custody and Withdrawal Timing for Bitcoin
Coinbase Custody Trust Company will custody the Trust's bitcoin and the custodian may require up to 24 hours between a withdrawal request and submission to the bitcoin network; private keys are stored offline. The custodian does not guarantee exact processing times and withdrawals may be delayed.
Possible Trading Halts if Price or NAV Data Interrupt
The Exchange may halt trading in the Shares if the IIV or Index value is not being disseminated as required or if the NAV is not available to all market participants; halts may also occur if trading in the underlying bitcoin is not occurring or unusual conditions make trading inadvisable.
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