Coinbase in Talks to Acquire Crypto Asset Manager Osprey Funds

Coinbase is in the process of acquiring asset management firm Osprey Funds. The acquisition talks are at a high level and informal at this stage.

May 21, 2021, | AtoZ MarketsNasdaq-listed Bitcoin exchange Coinbase is in talks to buy asset manager Osprey Funds, CoinDesk is reporting with reference to sources familiar with the deal.

One of the interlocutors of the publication stressed that the negotiations are being held at a high level and are of an unofficial nature. The deal with Osprey Funds has yet to be signed, he said.

“It is clear that Coinbase wants to enter the asset management market,” said a second source.

Osprey Funds controls two cryptocurrency funds: one based on bitcoin and one based on Polkadot. The volume of the first is estimated at $ 113.538 million, the second - at $9.358 million .

The custodian of the Osprey Bitcoin Trust is the digital asset-focused arm of Fidelity Investments. The assets of the Osprey Polkadot Trust are held by Coinbase Custody.

While Osprey Funds declined to comment on the matter, a Coinbase spokesperson said the company doesn’t comment on “rumors and speculation.”

Coinbase previously acquired cryptocurrency prime broker Tagomi . According to media reports, the value of the deal ranged from $70 million to $100 million.

In January 2021, the company acquired Bison Trails, a blockchain infrastructure solution provider .

In April 2021, Coinbase announced its upcoming acquisition of crypto derivatives markets data provider Skew.

Recall that in May, the Bitcoin exchange announced a private placement of convertible bonds in the amount of $1.25 billion, maturing in 2026.

Coinbase also announced its decision to close all physical branches due to its desire to adhere to the principle of decentralization.

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