Osprey Funds, LLC, the trust's sponsor, is looking for strategic options to increase unitholder value, such as selling the trust or merging with a Bitcoin ETF.

In the event that it fails, the sponsor intends to liquidate the trust in 180 days. Furthermore, the trust plans to file a Form 15 with the SEC to stop the registration of its units under the Securities Exchange Act of 1934.

Its duty to submit particular reports will be suspended as a result. The trust anticipates that 90 days following filing, deregistration will take effect. The Trust will follow its alternative reporting standard when quoted on the OTCQX.

Osprey Bitcoin Trust has surfaced as a rival to Grayscale's larger GBTC fund, which was recently converted into an ETF. Osprey filed a lawsuit against Grayscale, claiming that the company had made false statements about the certainty of its ETF conversion.