1. Asset Purchase Agreement
2. Tax and Financial Aspects of the Deal
3. Background and Future Plans

Bitwise, the largest crypto index fund manager in the U.S., announced an asset purchase agreement with Osprey Funds to acquire the assets of Osprey Bitcoin Trust.

Asset Purchase Agreement

Bitwise announced in a press release on August 27 that it has entered into an asset purchase agreement with Osprey Funds to acquire the assets of Osprey Bitcoin Trust. While the financial details of the transaction were not disclosed, OBTC unitholders under the terms of the deal will receive BITB shares in a liquidating distribution with no changes expected for existing BITB holders. According to data from Osprey Funds’ official website, the trust had over $123 million in assets under management as of August 26.

Tax and Financial Aspects of the Deal

The deal is structured to be tax-free for OBTC unitholders under U.S. federal income tax laws, per the press release. Osprey Funds says further details will be outlined in a registration statement to be filed with the Securities and Exchange Commission. The transaction aims to provide OBTC unitholders with equivalent exposure to bitcoin via BITB and is expected to close later this year, pending customary closing conditions.

Background and Future Plans

This acquisition follows Osprey’s earlier announcement regarding its exploration of strategic alternatives to enhance unitholder value, including the possibility of a sale or merger of the Trust. Osprey representatives note that this is a significant step forward, offering OBTC unitholders the opportunity to benefit from the scale and expertise of Bitwise. Earlier, Bitwise announced its expansion into the European market by acquiring London-based ETC Group, a crypto exchange-traded product issuer managing over $1 billion in assets. Bitwise plans to rebrand all of ETC Group’s offerings under its own name without changing existing investment strategies.

The acquisition of Osprey Bitcoin Trust assets represents a significant step forward for Bitwise, allowing the company to strengthen its market position and offer clients new opportunities. Osprey notes that this move will enable OBTC unitholders to benefit from Bitwise's capabilities.