Bitcoin ETF

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Grayscale Bitcoin Trust

Osprey Funds, a closed-end Bitcoin investment firm, is finalizing an Asset Purchase Agreement with Bitwise Asset Management. The deal entails that Bitwise Bitcoin Exchange Trust Fund (ETF) BITB receives $120 million in Bitcoin (BTC) through an agreement to acquire assets from Osprey Bitcoin Trust (OBTC).&nbsp;
This deal comes as Osprey Fund is on the verge of liquidating its assets due to low returns on its digital investment product. On August 27, the two firms jointly <a href="https://www.businesswire.com/news/home/20240827146280/en/Osprey-Funds-and-Bitwise-Asset-Management-Announce-the-Bitwise-Bitcoin-ETF-to-Acquire-the-Assets-of-the-Osprey-Bitcoin-Trust" rel="noopener noreferrer nofollow">announced</a> this acquisition deal, slated to close later this year, pending closing conditions. As part of the deal, OBTC unit holders will receive BITB shares upon selling their OBTC shares.&nbsp;
<h2 id="b-osprey-funds-fulfill-bitcoin-etf-merger-dream-b">Osprey Funds Fulfill Bitcoin ETF Merger Dream&nbsp;</h2>
Bitwise BITB acquiring all of Osprey’s assets is a relief for the firm. In March, the investment firm decided to pursue a potential sale or merger with a Bitcoin ETF after realizing its trust units were trading below Bitcoin’s value. Data from <a href="https://www.barchart.com/crypto/quotes/%5EBTCUSD/performance" rel="noopener noreferrer nofollow">Barchart</a> and <a href="https://finance.yahoo.com/quote/OBTC/" rel="noopener noreferrer nofollow">Yahoo Finance</a> even show that investors holding OBTC long-term might have seen a 9.5% return in three years.
Noteworthy, Bitcoin has increased by 23.5% during that same time. OBTC’s total assets under management stand at about&nbsp; $120.7 million.&nbsp;
This low investment return prompted Greg King, Osprey Funds founder and CEO, to seek a solution that would benefit the company and its customers. In an <a href="https://x.com/GregKingOsprey/status/1828441757421576268" rel="noopener noreferrer nofollow">X post</a>, King expressed that this acquisition deal with Bitwise is the optimal choice as it provides a significant opportunity for OBTC unitholders.
<h2 id="b-osprey-funds-once-competed-with-grayscale-b">Osprey Funds Once Competed With Grayscale</h2>
Osprey Funds and Grayscale Bitcoin Trust (GBTC) were once rivals in the digital market. Both offered Bitcoin trusts to investors in the Over-the-Counter Market (OTC) before GBTC switched its investment offerings to a spot Bitcoin ETF. When OBTC was introduced in 2021, it was hailed as the most budget-friendly choice and easy to enter Bitcoin.&nbsp;
This was because of its 0.49% management fee offer to investors. The Fairfield-based asset manager <a href="https://thecoinrise.com/crypto-asset-manager-osprey-funds-launches-solana-trust-product/" rel="noopener noreferrer nofollow">launched a Solana (SOL) trust product the same year. </a>In 2023, <a href="https://thecoinrise.com/osprey-funds-sues-rival-grayscale-for-misleading-ads/" rel="noopener noreferrer nofollow">Osprey took legal action against Grayscale</a> for allegedly publicizing adverts about its Grayscale Bitcoin Trust.
<h2 id="b-bitwise-investment-funds-gains-traction-b">Bitwise Investment Funds Gains Traction</h2>
Bitwise’s spot Bitcoin ETF has witnessed a significant $2 billion influx of investor funds within the past seven months. It offers a lower management fee of 0.20%. BITB has been trading in close alignment with Bitcoin, with a discount or premium to NAV hovering around 0%.&nbsp;
This has recently caused the firm’s Bitcoin and Ethereum ETFs to <a href="https://thecoinrise.com/bitwise-bitcoin-and-ethereum-etf-attracts-capital-from-top-ria/" rel="noopener noreferrer nofollow">attract a surge of capital from a large Registered Investment Advisor</a> (RIA). Despite Bitwise’s impressive records in the crypto market, its performance and that of other crypto asset managers has been overshadowed by <a href="https://thecoinrise.com/blackrock-outshines-grayscale-as-biggest-crypto-etf/" rel="noopener noreferrer nofollow">BlackRock’s iShares Bitcoin Trust</a> (IBIT).
The post <a href="https://thecoinrise.com/bitwise-bitcoin-etf-set-to-expand-portfolio-with-osprey-bitcoin-trust/" rel="noopener noreferrer nofollow">Bitwise Bitcoin ETF Set to Expand Portfolio With Osprey Bitcoin Trust</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Bitwise Bitcoin ETF Set to Expand Portfolio With Osprey Bitcoin Trust

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