Bitwise to Acquire Assets of Osprey Funds’ Bitcoin Trust
The industry has undergone a considerable development in the cryptocurrency investment market when it was announced that Bitwise, the major digital currency index fund manager in the U.S., has already finalized the purchase of Osprey Bitcoin Trust (OBTC) assets from Osprey Funds. The acquisition represents a new wave of market share ownership for Bitwise, thus strengthening the leadership of them in the crypto investment sector.
OBTC Unitholders to Receive BITB Shares
Bitwise announced the transaction on August 27 and emphasized that the asset purchase agreement will result in OBTC shareholders obtaining BITB shares as part of a liquidating distribution. This setup provides existing OBTC shareholders with an undisturbed exposure to Bitcoin without any adjustments. The Osprey Zone’s official website states that the trust had equities and bitcoins worth more than $123 million under management as of August 26.
One of the key benefits of this transaction as highlighted by each firm is that unitholders of OBTC do not endure U.S. federal income tax even though they are still part of the fund. Particular information on the switch will be shared in a registration statement which Osprey Funds aims to present to the Securities and Exchange Commission (SEC). The deal, if concluded with the normal closing scenario, will be secured and finished toward the end of this year.
Strategic Move Amidst Osprey’s Exploration of Alternatives
Moreover, the acquisition fits in well with Osprey Funds’ strategic plan which they previously announced that they had investigated other opportunities to improve unit value, including the chance to sell or merge the trust. The choice of becoming a joint-venture partner of them is demonstration of Osprey’s goal of unitholders having more opportunities and being able to benefit from the extensive expertise and support Bitwise offers.
Osprey sees this as a “significant step” forward, giving OBTC shareholders an opportunity to take advantage of Bitwise’s scale and performance efficiency, said by of the world’s first fully online M&A marketplace and an incubator of startups in blockchain technology, Bitwise Asset Management.
Bitwise’s Broader Expansion Strategy
Bitwise’s acquisition of Osprey Bitcoin Trust is just one part of its big picture growth strategy. As a matter of fact, this is occurring just a few days after the company acquired ETC Group, a London-based crypto ETP (exchange-traded product) provider, which marks the beginning of its entry into the European market. ETC Group boasts of having above $1 billion of assets under management, whose crypto ETP listings are part of Bitwise’s holdings.
Established by a team of eight in 2019, the ETC Group has long been acknowledged for offering the first physically-covered Bitcoin ETP and other cutting-edge products. Even though Bitwise has also developed its own brand name and strategy for these products, the company’s claims that they will not bring about changes that disrupt the principal investment plans of existing ones.
In addition to this acquisition, which is part of Bitwise’s ongoing efforts to increase its presence in the global crypto market, OFspy’s Vita Chain assets are another option for it to expand its portfolio. Through the acquisition, Bitwise will be able to offer investors a diversified, high-quality crypto investment option.
