As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies and ETFs, this acquisition between Bitwise Bitcoin ETF (BITB) and Osprey Bitcoin Trust (OBTC) is an interesting development to observe.
Bitwise Bitcoin ETF (BITB) has announced that it is acquiring Osprey Bitcoin Trust (OBTC).
In the announcement made on Tuesday, it’s been disclosed that investors in OBTC will receive shares of BITB, as part of OBTC’s process of distributing assets (liquidation).
Back in February 2021, OBTC made its debut as a relatively smaller player in the market. It currently manages approximately $120 million in assets.
As a researcher, I’m excited to share that this acquisition brings significant advantages for our OBTC investors. Firstly, you’ll enjoy reduced fees, with transactions on BITB costing only 0.2%, as opposed to the 0.49% you were paying with OBTC. Secondly, you’ll experience a more precise reflection of Bitcoin’s price movements with BITB, as it tends to align more closely with Bitcoin’s value compared to OBTC.
For shareholders of BITB, rest assured that your investment and the functioning of the fund remain unchanged.
This purchase aligns with Bitwise’s overarching strategy to expand its influence within the cutthroat Bitcoin Exchange-Traded Fund (ETF) sector, a field where they go head-to-head with established players such as BlackRock, Fidelity, and Grayscale.
More recently, Bitwise has grown its reach by purchasing ETC Group, a company based in London that provides crypto investment solutions much like Bitwise does. This acquisition increases Bitwise’s managed assets to an impressive $4.5 billion, reinforcing its impact within the international cryptocurrency sector.
Previously, Over-the-Counter Bitcoin (OBTC) investors might find their share prices not accurately reflecting the real value of Bitcoin. Now, by using BITB, they can enjoy a more synchronized pricing system.
Over the last four weeks, OBTC stocks decreased by 4.27%, contrastingly, Bitcoin dipped by 9.34%. Interestingly, BITB experienced a fall of 8.56%, mirroring Bitcoin’s price fluctuations more closely.
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2024-08-28 01:08