Bitwise Asset Management and Osprey Funds have announced an agreement to acquire $120 million in assets from the Osprey Bitcoin Trust (OBTC).
Deal Details
On August 27, Bitwise Asset Management and Osprey Funds made a joint statement announcing the asset purchase agreement. As part of the transaction, OBTC unitholders will receive BITB shares in exchange for liquidating their OBTC shares. The deal is expected to close later this year, subject to closing conditions.
History of Osprey Bitcoin Trust
Osprey Funds, based in Fairfield, Connecticut, began trading OBTC on the over-the-counter market in February 2021, providing U.S. investors with a 0.49% management fee rate. At that time, OBTC was a competitor to the larger Grayscale Bitcoin Trust, which later transitioned to a spot Bitcoin ETF. In January 2023, Osprey sued Grayscale, alleging that its misleading advertising allowed it to monopolize the market. By March, Osprey announced considering a potential sale or liquidation due to OBTC units trading at a discount to Bitcoin's value.
Long-term Prospects and Conditions
Long-term OBTC investors may have noticed that the trust’s three-year return is around 9.5%, while Bitcoin has seen a 23.5% return over the same period. In their statement, Osprey and Bitwise emphasized that Bitwise's acquisition represents a significant step, offering OBTC unitholders the opportunity to benefit from Bitwise's scale and expertise. According to YCharts, over the past month, OBTC's discount to Bitcoin hovered around 3% to 5%, while BITB traded much closer to NAV with a discount or premium near 0%.
Upon completion, OBTC shareholders are expected to benefit from Bitwise Bitcoin ETF’s expertise and scale, gaining better asset management conditions.
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