Bitcoin ETF

Bitcoin

Spot

<ul>
 <li><strong>Bitwise acquires Osprey Bitcoin Trust (OBTC) to integrate into its Bitcoin Spot ETF, aiming to provide investors with closer alignment to Bitcoin’s spot price and lower fees.</strong></li>
 <li><strong>The acquisition is expected to close in the second half of 2024, expanding Bitwise’s assets under management significantly.</strong></li>
</ul>
<p>On August 27, Bitwise, a prominent U.S.-based crypto asset management company, announced its acquisition of Osprey <a href="https://www.ethnews.com/texas-bitcoin-mining-giant-rhodium-enterprises-declares-bankruptcy-amid-economic-pressures/" rel="noopener noreferrer nofollow">Bitcoin </a>Trust (OBTC), a smaller competing investment fund. This strategic move will see OBTC absorbed into the Bitwise Bitcoin ETF (BITB), enhancing the ETF’s investor base and broadening its market footprint.</p>
<p>Under the terms of this acquisition, OBTC shareholders will receive shares of the Bitwise <a href="https://www.ethnews.com/bitcoin-news-crypto-assets-primed-for-a-major-rally-fed-rate-cut-ignites-market-frenzy/" rel="noopener noreferrer nofollow">Bitcoin</a> ETF as part of the liquidation distribution. For existing BITB shareholders, this transaction will not affect their holdings. The acquisition is anticipated to be finalized in the second half of 2024.</p>
<p>OBTC, with assets worth $120 million, operates similarly to the pre-ETF format of Grayscale’s <a href="https://www.ethnews.com/cryptocurrency-forecast-bitcoin-binance-coin-and-ripple-in-focus-after-feds-policy-tease/" rel="noopener noreferrer nofollow">Bitcoin</a> Investment Trust. It holds Bitcoin on behalf of its shareholders, tracking the CMBI Bitcoin Index, with Coinbase serving as its custodian. Originally, OBTC shares were privately offered to accredited investors by Osprey Funds, a Connecticut-based investment firm.</p>
<p>A key distinction of OBTC is its trading price, which may fluctuate above or below the value of its Bitcoin holdings, often deviating more from the spot price of <a href="https://www.ethnews.com/semler-scientific-bolsters-bitcoin-holdings-signals-strong-institutional-interest/" rel="noopener noreferrer nofollow">Bitcoin</a> compared to traditional ETFs. The acquisition by Bitwise aims to mitigate this disparity, granting OBTC shareholders access to an ETF structure that aligns more closely with the spot price of Bitcoin. Additionally, the management fee will be reduced from 0.49% to 0.2%, offering further financial benefits to investors.</p>
<p>Osprey Funds has been exploring opportunities for a sale or merger with other <a href="https://www.ethnews.com/experts-are-confident-bull-run-starting-for-bitcoin-update-outlook-on-cardano-rivals/" rel="noopener noreferrer nofollow">Bitcoin</a> investment funds for some time. The decision to sell to Bitwise is seen as a pivotal step in consolidating its offerings and aligning with a stronger market player.</p>
<h2 id="understanding-bitcoin-etfs">Understanding Bitcoin ETFs</h2>
<p>A Bitcoin ETF (Exchange Traded Fund) is an investment vehicle that holds Bitcoin as its underlying asset, allowing investors to gain exposure to <a href="https://www.ethnews.com/ethereum-to-flip-bitcoin-insider-insights-reveal-massive-shift/" rel="noopener noreferrer nofollow">Bitcoin</a> without directly owning the cryptocurrency. ETFs are structured as pooled funds that collect money from investors, which is then used to buy and hold various assets like stocks, bonds, or in this case, Bitcoin. These funds are listed on stock exchanges and can be traded like regular stocks, providing a convenient way for investors to participate in the market.</p>
<p>BITB, operated by Bitwise, is among ten <a href="https://www.ethnews.com/altcoins-that-bitcoin-whales-are-betting-on/" rel="noopener noreferrer nofollow">Bitcoin</a> Spot ETFs introduced in the U.S. in January. With $2.4 billion in assets under management, it is currently the fifth largest Bitcoin Spot ETF in the United States, offering investors a reliable option for Bitcoin exposure.</p>
<h2 id="bitwise-expands-in-europe">Bitwise Expands in Europe</h2>
<p>In addition to its U.S. expansion, Bitwise announced on August 19 that it had acquired the British cryptocurrency ETP (Exchange Traded Product) provider ETC Group. This acquisition will push Bitwise’s total assets under management to over $4.5 billion. The ETC Group provides a range of exchange-traded crypto products, including those linked to <a href="https://www.ethnews.com/trump-endorses-bitcoin-is-this-the-end-of-traditional-banking/" rel="noopener noreferrer nofollow">Bitcoin</a>, Ethereum, and Solana, catering primarily to European investors with a current asset base of $1 billion.</p>
<p>This move marks Bitwise’s strategic expansion into the European market, further solidifying its position as a leading global crypto asset manager.</p>
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<p>The post <a href="https://www.ethnews.com/bitwise-expands-bitcoin-etf-reach-by-acquiring-competitor-obtc/" rel="noopener noreferrer nofollow">Bitwise Expands Bitcoin ETF Reach by Acquiring Competitor OBTC</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Bitwise Expands Bitcoin ETF Reach by Acquiring Competitor OBTC

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