Bitcoin Trust (OBTC) Plans Asset Transfer to Bitwise Bitcoin ETF (BITB) Upon Approval

Osprey Funds, LLC, the sponsor of the Osprey Bitcoin Trust (OTCQX: OBTC), and Bitwise Asset Management, the operator of the Bitwise Bitcoin ETF (BITB), have recently announced a significant development. In a press release issued on August 27, the two entities disclosed their entry into an Asset Purchase Agreement. This agreement entails BITB acquiring the assets of the Osprey Bitcoin Trust.

The transition involves OBTC unitholders receiving shares of BITB through a liquidating distribution, facilitating a seamless shift in their exposure from OBTC to BITB. Notably, this process aims to be tax-free for OBTC unitholders concerning U.S. federal income tax matters. Further specifics will be outlined in an upcoming Registration Statement on Form S-1, set to be submitted to the U.S. SEC. Unitholders are advised to monitor these filings for additional details as they unfold.

For existing BITB shareholders, there will be no alterations to their shares or the Fund’s operations following this transaction. The acquisition is structured to provide OBTC unitholders with a smooth transition to equivalently valued bitcoin exposure through BITB, leveraging Bitwise’s scale and expertise. The finalization of the transaction is subject to standard closing conditions and is anticipated to finalize later this year.

The press release emphasizes the necessity of comprehending the risks associated with investing in BITB, highlighting the investment’s susceptibility to a high level of risk and volatility. Additionally, it underscores that BITB is not registered under the Investment Company Act of 1940, indicating that it does not offer the same protections as mutual funds or ETFs registered under the Act.

In a separate announcement on August 19, Bitwise disclosed its acquisition of ETC Group, a strategic move signaling Bitwise’s expansion in Europe.

The Featured Image is sourced via Pixabay.

It’s important to note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading in cryptoassets carries inherent risks of financial loss.