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 U.S., announced in a press release on Aug. 27 that it has entered into an asset purchase agreement with Osprey Funds to acquire the assets of the Osprey Bitcoin Trust.
While the financial details of the transaction were not disclosed, OBTC unitholders under the terms of the deal will receive BITB shares in a liquidating 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 Aug. 26.
The deal is structured to be tax-free for OBTC unitholders under U.S. federal income tax laws, per the press release. Osprey Funds says further details will be outlined 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 close later this year, pending customary closing conditions.
This acquisition follows Osprey’s earlier announcement regarding its exploration of strategic alternatives to enhance unitholder value, including the possibility of a sale or merger of the Trust.
Bitwise expands with Osprey Bitcoin Trust acquisition
The move to join forces with Bitwise represents a “significant step” forward, Osprey says, adding that the acquisition offers OBTC unitholders the opportunity to “benefit from the scale and expertise of Bitwise.”
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 managing over $1 billion in assets. The deal added nine European-listed crypto ETPs to Bitwise’s portfolio, marking a significant step in its international growth.
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, though no material changes to the existing investment strategies are anticipated.