A agency referred to as Osprey Funds is providing an over-the-counter, or OTC, Bitcoin (BTC) belief underneath the ticker image OBTC. The belief is
A agency referred to as Osprey Funds is providing an over-the-counter, or OTC, Bitcoin (BTC) belief underneath the ticker image OBTC. The belief is just like Grayscale’s Bitcoin Belief, often known as GBTC.
“The Osprey Bitcoin Belief supplies easy accessibility to bitcoin,” the agency’s web site says. “With a 0.49% administration payment, it’s the lowest price answer.” Osprey is an entity that “builds digital asset options for clever traders,” claiming OBTC as its “flagship providing,” the web site provides.
“OBTC started being quoted within the OTC market right this moment, Friday 1/15,” Osprey Funds’ CEO, Greg King, informed Cointelegraph, including:
“As of 1/14, the product met the necessities to change into quoted underneath the ticker OBTC within the OTC market. Over the subsequent 30 days, the fund will pursue DTC eligibility and after February 14, all further market makers are allowed to cite it. After that time it will likely be thought-about ‘absolutely launched.'”
Competitor Grayscale has change into one of many largest Bitcoin holders on the planet, possessing over 500,000 BTC as of November 2020. The agency is behind GBTC, which serves as a approach to purchase Bitcoin in inventory share type. Every share of GBTC represents a fraction of a Bitcoin — 0.00094 BTC per share on the time of publication, based mostly on Grayscale’s web site. events purchase and promote shares over-the-counter, accessible on mainstream brokerage platforms.
GBTC, partially, affords the general public simpler entry to Bitcoin by extra conventional avenues, with out requiring them to custody their very own funds. Grayscale’s Bitcoin Belief comes with a yearly 2% administration payment, nonetheless. Osprey’s just lately unveiled BTC belief touts a payment of 0.49%. “Osprey is probably going attempting to seize a few of that market share by undercutting GBTC’s payment, based on Bloomberg Intelligence,” Bloomberg wrote in a report on Friday. Osprey has referred to as on Constancy because the custodian for the endeavor.
“We’re all the time joyful to see digital forex entry merchandise enter the market, particularly right here within the U.S.,” Grayscale CEO Michael Sonnenshein informed Bloomberg.
“Accredited traders face a $25,000 minimal to purchase immediately into the belief,” Bloomberg wrote. “Shares have a lock-up interval of 1 yr earlier than they are often offered within the secondary market.” In distinction, Grayscale’s Bitcoin Belief requires property to be locked up for six months. Osprey may see its 12-month lock-up reduce in half sooner or later, nonetheless, based mostly on King’s feedback to Bloomberg.
Wilshire Phoenix, an funding agency, filed for the same product with the Securities and Alternate Fee in June 2020.