Osprey Funds, LLC, the sponsor of the Osprey Bitcoin Trust, the Bitwise Bitcoin ETF and Bitwise Asset Management jointly announced the entry into an Asset Purchase Agreement pursuant to which BITB will acquire the assets of the Trust.
As part of this transaction, OBTC unitholders will “receive shares of BITB as part of a liquidating distribution of OBTC.”
For existing BITB holders, there will be “no changes to their shares or any changes to the operation of BITB.”
The transaction contemplated “by the Asset Purchase Agreement is intended to be tax-free for OBTC unitholders for U.S. federal income tax purposes.”
Additional details about the Asset Purchase Agreement and transactions “contemplated thereby will be disclosed in the Registration Statement on Form S-1 that will be filed with the Securities and Exchange Commission in connection therewith.”
The transactions are intended to “provide OBTC unitholders with a seamless transition to equivalently valued exposure to bitcoin via BITB.”
The consummation of the transaction contemplated “by the Asset Purchase Agreement is subject to customary closing conditions and is expected to close later this year.”
This announcement follows Osprey’s prior communication “regarding its exploration of strategic alternatives to enhance unitholder value and the consideration of a potential sale or merger of the Trust.”
The acquisition by Bitwise represents a “significant step in that process, offering OBTC unitholders the opportunity to benefit from the scale and expertise of Bitwise.”
Osprey is committed to providing further “updates as the transaction progresses and encourages unitholders to review the forthcoming Securities and Exchange Commission filings for additional information.”
BITB is not suitable for all investors. An investment in BITB is subject to a high degree of risk, has the potential for “significant volatility, and could result in significant or complete loss of investment.”
BITB is not an investment company registered “under the Investment Company Act of 1940 and therefore is not subject to the same protections as mutual funds or ETFs registered under the 1940 Act.”
As noted in the update, Osprey Funds, LLC “offers common-sense solutions to digital asset investing. Based in Fairfield, Connecticut, Osprey is dedicated to building better investment products that offer secure, transparent, and cost-effective access to digital assets.”
As mentioned in the announcement, Bitwise Asset Management is “the largest crypto index fund manager in America.”
Thousands of financial advisors, family offices, and institutional investors “partner with Bitwise to understand and access the opportunities in crypto.”
For six years, Bitwise has established a track “record of excellence managing a broad suite of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies.”
Bitwise is known for providing “client support through expert research and commentary, its nationwide client team of crypto specialists, and its deep access to the crypto ecosystem.”
The Bitwise team of more than 60 professionals “combines expertise in technology and asset management with backgrounds including BlackRock, Millennium, ETF.com, Meta, Google, and the U.S. Attorney’s Office.”