Osprey Funds, LLC, the sponsor of the Osprey Bitcoin Trust (OTCQX: OBTC), along with Bitwise Asset Management, the operator of the Bitwise Bitcoin ETF (BITB), jointly announced in a press release issued on August 27 that they have entered into an Asset Purchase Agreement. This agreement will result in BITB acquiring the assets of the Osprey Bitcoin Trust.
The OBTC unitholders will receive shares of BITB through a liquidating distribution, effectively transitioning their exposure from OBTC to BITB. This process is intended to be tax-free for OBTC unitholders for U.S. federal income tax purposes. Additional details will be provided in a forthcoming Registration Statement on Form S-1, which will be filed with the U.S. SEC. Unitholders are encouraged to review these filings for further information as they become available.
Current BITB shareholders will see no changes to their shares or the operation of the Fund as a result of this transaction. The acquisition is designed to offer OBTC unitholders a seamless transition to equivalently valued exposure to bitcoin via BITB, with the added benefit of Bitwise’s scale and expertise. The completion of the transaction is contingent on customary closing conditions and is expected to occur later this year.
The press release underscores the importance of understanding the risks associated with investing in BITB, noting that the investment is subject to a high degree of risk and volatility. Additionally, it was highlighted that BITB is not registered under the Investment Company Act of 1940 and, therefore, does not carry the same protections as mutual funds or ETFs registered under the Act.
On August 19, Bitwise announced its acquisition of ETC Group, a move that marks the expansion of Bitwise’s presence in Europe.
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