Osprey Funds has introduced a new product to the market - an OTC Bitcoin Trust under the OBTC ticker. It is similar Grayscale bitcoin trust known as GBTC.
“The Osprey Bitcoin Trust provides easy access to Bitcoin. With a management fee of 0.49%, it is the most economical solution - says the company's website.
Osprey is an organization that “creates digital asset solutions for intelligent investors. OBTC is a flagship offering. "
Osprey Funds CEO Gray King also revealed other details:
“OBTC began to be listed on the OTC market inFriday. As of January 14, the product met the requirements for listing under the ticker OBTC in the OTC market. Over the next 30 days, the fund will pursue DTC compliance, after which it will be considered fully operational. "
Competitor Grayscale has become one of the largest bitcoin holders in the world with over 500,000 BTC as of November 2020.
Each GBTC share is a fraction of bitcoin - 0.00094 BTC, this is data from the Grayscale website. Stakeholders buy and sell stocks over the counter.
GBTC offers simplified access to bitcoinin more traditional ways, without requiring storage of your own funds. Grayscale's Bitcoin Trust offers a 2% annual management fee.
The recently opened BTC Trust charges a fee of 0.49%.
According to Bloomberg Intelligence, Osprey is trying to grab a piece of the market by cutting GBTC fees. In addition, Osprey turned to Fidelity as the repository for the project.
“For accredited investors, there is a minimum of $ 25,000 to buy directly into a trust. The shares have a blocking period of one year, after which they can be sold on the secondary market "- writes Bloomberg.
Bitcoin Trust Grayscale requires a six-month lockout, which is likely why CEO Osprey added that the lockdown period could be halved in the future.