Osprey Bitcoin Trust (OBTC) to Transfer Assets to Bitwise Bitcoin ETF (BITB)
Osprey Funds, LLC, the sponsor of the Osprey Bitcoin Trust (OTCQX: OBTC), and Bitwise Asset Management, the operator of the Bitwise Bitcoin ETF (BITB), announced they have entered into an Asset Purchase Agreement. This arrangement will lead to BITB acquiring the assets of the Osprey Bitcoin Trust, aiming for a seamless transition for unitholders.
What Does This Mean for OBTC Unitholders?
OBTC unitholders will receive shares of BITB through a liquidating distribution, allowing them to maintain their exposure to bitcoin. This transition is planned to be tax-free for U.S. federal income tax purposes. Further information will be detailed in an upcoming Registration Statement on Form S-1, which will be filed with the U.S. SEC. Unitholders are advised to monitor these filings for additional insights.
Impact on BITB Shareholders
Current BITB shareholders will not experience any changes to their shares or the fund's operations. The acquisition is meant to provide OBTC unitholders with equivalently valued exposure to bitcoin via BITB, leveraging Bitwise’s expertise and scale. Completion of this transaction is contingent on customary closing conditions, expected later this year.
Risk and Volatility Considerations
The press release emphasizes understanding the risks of investing in BITB, highlighting the investment's exposure to high risk and volatility. It also notes that BITB is not registered under the Investment Company Act of 1940, and therefore, lacks the protections offered by registered mutual funds or ETFs.
Bitwise's European Expansion
On August 19, Bitwise expanded its presence in Europe by acquiring ETC Group, marking a strategic move to broaden its market reach.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in or trading crypto assets involves a risk of financial loss.
