Bitwise to Acquire Osprey Bitcoin Trust, Expands Crypto Portfolio

• Bitwise Asset Management will acquire Osprey Bitcoin Trust, transitioning OBTC unitholders to BITB shares.
• The transaction is tax-free for OBTC unitholders and will ensure seamless exposure to bitcoin via BITB.
• This acquisition follows Bitwise’s strategic expansion into Europe with the purchase of ETC Group, enhancing its global crypto portfolio.

Bitwise Asset Management, the largest U.S. crypto index fund manager, announced in a press release on Aug. 27 it will acquire the assets of Osprey Bitcoin Trust (OBTC). This acquisition, set to close later this year, will allow Bitwise to expand its offerings in the crypto investment space. 

Osprey Unitholders Transition to BITB Shares

Under the agreement, OBTC unitholders will receive Bitwise Bitcoin ETF (BITB) shares through a liquidating distribution. The transaction is designed to be tax-free for OBTC unitholders under U.S. federal income tax laws, ensuring a smooth transition without impacting existing BITB holders. As of August 26, Osprey Bitcoin Trust managed over $123 million in assets.

Strategic Move to Enhance Investor Value

This acquisition is a significant step in Bitwise’s growth strategy, following its recent expansion into the European market with the acquisition of ETC Group. Osprey Funds had been exploring strategic alternatives to enhance unitholder value, with the sale of its Bitcoin Trust being a key outcome. The transaction offers OBTC unitholders an opportunity to benefit from Bitwise’s scale and expertise in the crypto market.

Regulatory Compliance and Future Outlook

It is noteworthy that the transaction is still waiting for the usual conditions of completion and more information is to be submitted to the SEC. This was after the Bitwise Group acquired England’s ETC Group, a company that issues exchange traded products in the region enhancing Bitwise portfolio by nine crypto ETPs listed in Europe as well. In addition, the company intends to continue the existing investment strategies, but will use its own branding for the products acquired from the ETC Group.