Crypto index fund supervisor Bitwise is about to amass the property of its rival, Osprey Bitcoin Belief.
Bitwise, the most important crypto index fund supervisor within the U.S., introduced in a press launch on Aug. 27 that it has entered into an asset buy settlement with Osprey Funds to amass the property of the Osprey Bitcoin Belief.
Whereas the monetary particulars of the transaction weren’t disclosed, OBTC unitholders below the phrases of the deal will obtain BITB shares in a liquidating distribution, with no modifications anticipated for current BITB holders. In response to information from Osprey Funds’ official web site, the belief had over $123 million in property below administration as of Aug. 26.
The deal is structured to be tax-free for OBTC unitholders below U.S. federal revenue tax legal guidelines, per the press launch. Osprey Funds says additional particulars shall be outlined in a registration assertion to be filed with the Securities and Alternate Fee. The transaction, which goals to offer OBTC unitholders with equal publicity to bitcoin through BITB, is predicted to shut later this yr, pending customary closing situations.
This acquisition follows Osprey’s earlier announcement concerning its exploration of strategic options to reinforce unitholder worth, together with the potential of a sale or merger of the Belief.
Bitwise expands with Osprey Bitcoin Belief acquisition
The transfer to affix forces with Bitwise represents a “vital step” ahead, Osprey says, including that the acquisition affords OBTC unitholders the chance to “profit from the size and experience of Bitwise.”
The acquisition follows Bitwise’s current growth into the European market with the acquisition of ETC Group, a London-based crypto exchange-traded product issuer managing over $1 billion in property. The deal added 9 European-listed crypto ETPs to Bitwise’s portfolio, marking a major step in its worldwide progress.
Based in 2019, ETC Group is thought for its bodily Bitcoin ETP, amongst different merchandise. Bitwise plans to rebrand all of ETC Group’s choices below its personal title, although no materials modifications to the prevailing funding methods are anticipated.
Learn extra: Bitwise CIO: Bitcoin ETFs breaking information, gaining unprecedented institutional traction
