Bitwise to acquire assets of Osprey Funds’ Bitcoin Trust

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

Bitwise, the largest crypto index fund manager in the United States, announced in a press release on August 27 that it has entered into an asset purchase agreement with Osprey Funds to acquire the assets of the Osprey Bitcoin Trust.

While financial details of the transaction were not disclosed, under the terms of the agreement, OBTC unitholders will receive BITB shares in the liquidation distribution, with no changes expected for existing BITB holders. According to data from Osprey Funds’ official website, the trust had over $123 million in assets under management as of August 26.

According to the press release, the deal is structured to be tax-free for OBTC unitholders under U.S. federal income tax laws. Osprey Funds says further 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 bitcoin exposure through BITB, is expected to close later this year, subject to customary closing conditions.

This acquisition follows Osprey’s previous announcement to explore strategic alternatives to enhance unitholder value, including the possibility of a sale or merger of the Trust.

Bitwise Expands with Osprey Bitcoin Trust Acquisition

Osprey said the decision to join forces with Bitwise was an “important step” forward, adding that the acquisition offers OBTC unitholders the opportunity to “leverage Bitwise’s scale and expertise.”

The acquisition follows Bitwise’s recent expansion into the European market with the acquisition of ETC Group, a London-based crypto exchange-traded product issuer with over $1 billion in assets under management. The deal marks a significant step in Bitwise’s international growth by adding nine European-listed crypto ETPs to its portfolio.

Founded in 2019, ETC Group is known for its physical Bitcoin ETP, among other products. Bitwise plans to rebrand all of ETC Group’s offerings under its own name, but no significant changes are foreseen in its current investment strategies.