Bitwise to Acquire Osprey Bitcoin Trust Assets, Offering OBTC Unitholders Shares of BITB
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Bitwise Asset Management has announced the acquisition of the Osprey Bitcoin Trust (OBTC).
According to a Tuesday press release, Bitwise is poised to integrate Osprey’s $120 million in assets under its own Bitwise Bitcoin ETF (BITB), marking a consolidation within the Bitcoin exchange-traded fund (ETF) market.
As part of the transaction, OBTC unitholders will receive BITB shares in a liquidating distribution.
Bitwise emphasized that existing BITB holders will not experience any changes to their shares or the fund’s operations.
Osprey has been operating its Bitcoin Trust since February 2021, mirroring the structure of the Grayscale Bitcoin Trust before its transition to an ETF.
However, unlike direct Bitcoin investments, OBTC shares could trade at premiums or discounts to the underlying Bitcoin holdings, leading to price discrepancies from the actual Bitcoin market.
#Bitwise #Bitcoin #ETF (#BITB) is set to acquire $120 million in Bitcoin from the #Osprey Bitcoin #Trust (#OBTC) as part of an Asset Purchase Agreement.
OBTC unitholders will receive BITB shares in exchange, with the transaction expected to close later this year.
This move… pic.twitter.com/zqI03AMrAx
Recent data shows that OBTC shares have declined by 4.27% over the past month, while Bitcoin’s price has dropped by 9.34%.
In contrast, BITB has experienced a smaller decrease of 8.56%, reflecting its closer alignment with Bitcoin’s price movements.
The transition to BITB offers OBTC unitholders the advantages of tighter tracking and a reduced management fee of 0.2%,
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