Osprey Funds introduces an OTC, or over-the-counter, Bitcoin trust under the symbol OBTC. The trust operates in the same line as with Grayscale’s Bitcoin Trust, popularly known as GBTC. The Osprey Bitcoin Belief (ticker OBTC) will begin in the over-the-counter markets with a 0.49% administration charge. This is in line with the Osprey Funds website.
As mentioned above, Osprey’s states that the BTC trust charges a fee of 0.49%. Contrarily, GBTC provides the public with more comfortable access to Bitcoin via more traditional avenues, without compelling them to custody their funds. However, Grayscale’s Bitcoin Trust appears with an annual 2% management fee.
OBTC to seize market share by underpricing fees
Further, demand for merchandise equivalent to GBTC has risen as Bitcoin’s rally touched all-time highs over $40,000. That rally presented greater than $3 billion of inflows into Grayscale Investments merchandise in Q4, most of which was employed by GBTC. According to the reports, Osprey will presumably seize a few of that market share by underpricing GBTC’s charge.
Moreover, opponent Grayscale has become one of the most significant Bitcoin holders globally. It holds above 500,000 BTC as of November 2020. According to Grayscale’s website, each share of GBTC serves a fraction of a Bitcoin, 0.00094 bitcoin per share at the time of writing. Involved parties purchase and sell shares over-the-counter, open on mainstream brokerage platforms.
According to the website, Osprey states that accredited investors will have their shares locked up for a year before selling in the secondary market. In opposition, Grayscale’s Bitcoin Trust provides a lock-up period for six months. Additionally. Osprey could view its 12-month lock-up cut in half in the prospect. Moreover, Wilshire Phoenix, an investment firm, registered for a comparable product with the SEC in June 2020.
However, bitcoin is getting a lot of attention recently due to a recent rise in the price of over $40,000. Not acknowledging bitcoin’s price gains as rigorously a speculative asset for a moment, crypto and blockchain are commencing to develop some momentum as more of mainstream technology. OBTC could be launching just at the right time and going ahead of a time of higher global acceptance.
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