Bitwise to acquire assets of Osprey Funds’ Bitcoin Trust

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As an analyst with years of experience in the dynamic world of cryptocurrencies, I find this recent move by Bitwise to acquire Osprey Bitcoin Trust as a strategic step towards market dominance. Given my background, I’ve seen many mergers and acquisitions in the crypto space, and this one seems particularly well-positioned to succeed.

Crypto index fund manager Bitwise is set to acquire the assets of its rival, Osprey Bitcoin Trust.

In simple terms, on August 27th, Bitwise – the leading crypto index fund manager in the United States – declared they have agreed to buy the assets of the Osprey Bitcoin Trust from Osprey Funds, as stated in a press release.

Under the terms of the agreement, OBTC unit owners will receive shares of BITB in a distribution process that liquidates the company. This should not affect the current holdings of BITB shares. As per information from Osprey Funds’ official website, their assets under management were approximately $123 million as of August 26th.

In the press release, it’s mentioned that the structure of the deal makes it tax-exempt for OBTC unit holders according to U.S. federal income tax regulations. Osprey Funds have stated that more specific details will be provided in a registration statement they plan to submit to the Securities and Exchange Commission. This transaction, designed to offer OBTC unit holders an equivalent investment in bitcoin through BITB, is anticipated to finalize later this year, assuming it meets standard closing conditions.

This purchase is made following Osprey’s previous statement about investigating strategic options aimed at boosting shareholder value, such as a potential sale or merger of the Trust.

Bitwise expands with Osprey Bitcoin Trust acquisition

According to Osprey, teaming up with Bitwise is a “notable advance,” as it provides OBTC unitholders with the chance to leverage the size and know-how of Bitwise.

This move comes after Bitwise’s entry into the European market through the acquisition of ETC Group, a London-based issuer of crypto exchange-traded products overseeing more than $1 billion in assets. The transaction has enlarged Bitwise’s product lineup by incorporating nine European-listed crypto ETPs, signifying a substantial stride in their global expansion.

Established in 2019, ETC Group has gained recognition for its Physical Bitcoin Exchange-Traded Product, along with other offerings. Bitwise aims to rebrand all of ETC Group’s products under its own brand, but it is expected that there will be no significant alterations to the current investment strategies.

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2024-08-27 16:32