According to Blockworks, Bitwise announced that it will acquire Osprey Bitcoin Trust assets for a total of approximately $120 million. Bitwise CEO Hunter Horsley said the transaction will reduce costs and increase liquidity and is expected to be completed later this year.
Bitwise also recently acquired ETC Group, strengthening its presence in Europe. This acquisition will further strengthen its position in the U.S. market, where the Bitwise Bitcoin ETF (BITB) currently has $2.4 billion in assets.
Bitwise has significantly expanded through ETF offerings since launching the Bitwise 10 Crypto Index Fund in 2017. Its Bitcoin ETF has seen net inflows of about $2 billion since launch, ranking fourth behind BlackRock, Fidelity and Ark Invest/21Shares.
Eric Risley, managing partner of M&A consulting firm Architect Partners, said that as a leader in crypto asset management, it is reasonable and expected for Bitwise to expand its business through mergers and acquisitions.
YouHodler head of marketing Ruslan Lienkha believes that traditional financial institutions acquiring or investing in crypto companies is a logical progression of crypto industry consolidation, and expects this trend to continue for several years.