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Bitwise Asset Management has announced a plan to acquire the assets of the {Osprey Bitcoin Trust} (OBTC), following an Asset Purchase Agreement between the two parties. According to a joint statement released on August 27, the acquisition will see Bitwise’s Bitcoin ETF (BITB) obtain approximately $120 million in Bitcoin from OBTC.
The agreement stipulates that OBTC unitholders will receive shares of BITB in exchange for liquidating their OBTC holdings. The transaction is subject to closing conditions and is anticipated to be finalized later this year.
Osprey Funds, headquartered in Fairfield, Connecticut, launched the OBTC on the over-the-counter (OTC) market in February 2021. The trust offered a management fee of 0.49% and served as an alternative to the larger Grayscale Bitcoin Trust (GBTC), which has since converted to a spot Bitcoin ETF. In January 2023, Osprey Funds initiated legal action against Grayscale, alleging that misleading advertising contributed to Grayscale’s dominant market position.
By March, Osprey Funds began evaluating options for the trust due to OBTC units trading at a discount relative to Bitcoin's market value. Greg King, founder and CEO of Osprey Funds, indicated in an August 27 statement that the acquisition by Bitwise is a beneficial solution for all parties involved. The current assets under management for OBTC are reported to be approximately $120.7 million.
Long-term performance data shows that OBTC has delivered a three-year return of around 9.5%, compared to Bitcoin’s 23.5% return over the same period, according to Barchart and Yahoo Finance. The acquisition by Bitwise represents a strategic move for Osprey Funds, offering OBTC unitholders access to the scale and expertise of Bitwise.
This development follows Osprey's earlier communication regarding its exploration of strategic alternatives, with the acquisition marking a significant step in that process.
