According to Cointelegraph: Bitwise Asset Management's Bitcoin ETF (BITB) is set to acquire $120 million in Bitcoin from the Osprey Bitcoin Trust (OBTC) through a recently announced Asset Purchase Agreement. This strategic move will see OBTC unitholders exchanging their shares for BITB shares as part of the deal, which is expected to be finalised later this year, pending closing conditions.
The year-to-date unit price of the Osprey Bitcoin Trust (OBTC) Source: Yahoo Finance
OBTC, launched in February 2021, initially positioned itself as a competitor to the Grayscale Bitcoin Trust. However, trading challenges, including a persistent discount to Bitcoin's value, led Osprey to seek strategic alternatives, culminating in this acquisition.
Bitwise’s BITB discount to NAV. Source: YCharts
Since its inception seven months ago, Bitwise's BITB has attracted $2 billion in investor inflows, offering a lower management fee of 0.20%. However, it still lags behind BlackRock's iShares Bitcoin Trust, which has amassed $21 billion in investor funds since January.