Key Points
- Bitwise, a leading crypto index fund manager, is set to acquire the assets of Osprey Bitcoin Trust.
- The acquisition is part of Bitwise’s expansion strategy, following its recent acquisition of ETC Group.
Bitwise, a top crypto index fund manager in the U.S., is planning to acquire the assets of its competitor, Osprey Bitcoin Trust.
The announcement was made public on August 27, with Bitwise entering into an asset purchase agreement with Osprey Funds.
Details of the Acquisition
The financial specifics of the transaction were not revealed. However, under the agreement’s terms, OBTC unitholders will receive BITB shares through a liquidating distribution, with no expected changes for existing BITB holders.
As per the information on Osprey Funds’ official website, the trust had more than $123 million in assets under management as of August 26.
The acquisition is structured to be tax-free for OBTC unitholders under U.S. federal income tax laws. More details will be provided in a registration statement to be filed with the Securities and Exchange Commission.
The transaction, which aims to provide OBTC unitholders with equivalent exposure to bitcoin via BITB, is expected to be completed later this year, subject to customary closing conditions.
This move comes after Osprey’s previous announcement about exploring strategic alternatives to increase unitholder value, which included the potential sale or merger of the Trust.
Bitwise’s Expansion Strategy
The decision to collaborate with Bitwise is a “significant step” forward, according to Osprey. The acquisition provides OBTC unitholders the opportunity to “benefit from the scale and expertise of Bitwise.”
This acquisition comes after Bitwise’s recent expansion into the European market through the acquisition of ETC Group. This London-based crypto exchange-traded product issuer manages over $1 billion in assets.
The acquisition added nine European-listed crypto ETPs to Bitwise’s portfolio, marking a significant milestone in its international growth.
ETC Group, established in 2019, is recognized for its physical Bitcoin ETP, among other products. Bitwise intends to rebrand all of ETC Group’s offerings under its own name, though no significant changes to the existing investment strategies are expected.
