Osprey Bitcoin Trust (OBTC) Asset Acquisition

Osprey Funds, the sponsor of Osprey Bitcoin Trust (OBTC), has entered into an agreement with Bitwise Bitcoin ETF (BITB) and Bitwise Asset Management. Under this agreement, BITB will acquire all assets of the OBTC fund.

This strategic move follows Osprey’s earlier considerations of a potential sale or merger with a bitcoin ETF, as part of broader strategic maneuvers noted in March of this year. Osprey had a deadline of September 1, 2024, to complete the sale or merger or face the liquidation of OBTC.

In the transaction, OBTC unitholders will receive shares of BITB as part of a liquidating distribution of OBTC. Osprey Funds clarified that for existing BITB holders, there will be no changes to their shares or to the operation of BITB.

Bitwise’s acquisition of OBTC follows its earlier acquisition of the London-based crypto exchange-traded products issuer ETC Group on August 19. As of August 26, 2024, BITB had a daily trading volume of $55.95 million. Bitwise’s fund holds 4.69% of the total spot bitcoin ETF market share.