The second major player enters the bitcoin trust market

Osprey Funds has offered the market a new product – an over-the-counter Bitcoin trust under the ticker OBTC. It is similarGrayscale bitcoin trust known as GBTC.

«Osprey Bitcoin Trust provides easy access to Bitcoin.With a management fee of 0.49%, this is the most economical solution,– says on the company’s website.

Osprey is an organization that “creates digital asset solutions for smart investors. OBTC is the flagship offer».

Osprey Funds CEO Gray King also revealed other details:

«OBTC began to be listed on the OTCmarket on Friday. As of January 14, the product qualified to be listed under the ticker OBTC on the over-the-counter market. Over the next 30 days, the fund will seek DTC compliance, after which it will be considered fully launched.

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.

«Accredited investors have a $25,000 minimum to purchase directly into the trust. Shares have a lock-up 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.

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