🌎 Bitwise to Acquire Osprey Bitcoin Trust in Strategic Move

Bitwise, the largest crypto index fund manager in the U.S., has announced its plan to acquire the assets of its rival, Osprey Bitcoin Trust. In a recent press release dated Aug. 27, Bitwise confirmed the asset purchase agreement with Osprey Funds, aiming to consolidate its position in the cryptocurrency market.

While the financial specifics of the transaction remain undisclosed, OBTC unitholders will receive BITB shares in a liquidating distribution. This process is expected to have no impact on existing BITB holders. According to Osprey Funds, the trust managed over $123 million in assets as of Aug. 26.

The deal is structured to be tax-free for OBTC unitholders under U.S. federal income tax laws. Further details will be provided in a registration statement to be filed with the Securities and Exchange Commission. The acquisition, intended to offer OBTC unitholders equivalent exposure to bitcoin through BITB, is anticipated to close later this year, subject to customary closing conditions.

This acquisition aligns with Osprey’s earlier announcement about exploring strategic alternatives to enhance unitholder value, including the potential sale or merger of the Trust.

Bitwise Expands with Osprey Bitcoin Trust Acquisition

The collaboration with Bitwise marks a significant step forward, according to Osprey. The acquisition allows OBTC unitholders to benefit from Bitwise’s scale and expertise.

This move follows Bitwise’s recent expansion into the European market with the acquisition of ETC Group, a London-based crypto exchange-traded product issuer managing over $1 billion in assets. This deal added nine European-listed crypto ETPs to Bitwise’s portfolio, enhancing its international presence.

Founded in 2019, ETC Group is well-known for its physical Bitcoin ETP, among other products. Bitwise plans to rebrand all of ETC Group’s offerings under its own name, though no significant changes to the existing investment strategies are expected.