Crypto index fund supervisor Bitwise is ready to amass the property of its rival, Osprey Bitcoin Belief.
Bitwise, the most important crypto index fund supervisor within the U.S., introduced in a press launch on Aug. 27 that it has entered into an asset buy settlement with Osprey Funds to amass the property of the Osprey Bitcoin Belief.
Whereas the monetary particulars of the transaction weren’t disclosed, OBTC unitholders below the phrases of the deal will obtain BITB shares in a liquidating distribution, with no modifications anticipated for present BITB holders. In line with knowledge from Osprey Funds’ official web site, the belief had over $123 million in property below administration as of Aug. 26.
The deal is structured to be tax-free for OBTC unitholders below U.S. federal earnings tax legal guidelines, per the press launch. Osprey Funds says additional particulars will likely be outlined in a registration assertion to be filed with the Securities and Trade Fee. The transaction, which goals to supply OBTC unitholders with equal publicity to bitcoin through BITB, is anticipated to shut later this yr, pending customary closing situations.
This acquisition follows Osprey’s earlier announcement relating to its exploration of strategic alternate options to boost unitholder worth, together with the potential of a sale or merger of the Belief.
Bitwise expands with Osprey Bitcoin Belief acquisition
The transfer to affix forces with Bitwise represents a “vital step” ahead, Osprey says, including that the acquisition provides OBTC unitholders the chance to “profit from the size and experience of Bitwise.”
The acquisition follows Bitwise’s current enlargement into the European market with the acquisition of ETC Group, a London-based crypto exchange-traded product issuer managing over $1 billion in property. The deal added 9 European-listed crypto ETPs to Bitwise’s portfolio, marking a big step in its worldwide progress.
Based in 2019, ETC Group is thought for its bodily Bitcoin ETP, amongst different merchandise. Bitwise plans to rebrand all of ETC Group’s choices below its personal identify, although no materials modifications to the prevailing funding methods are anticipated.
Learn extra: Bitwise CIO: Bitcoin ETFs breaking data, gaining unprecedented institutional traction
