Osprey Fund’s bitcoin belief is now accessible to retail buyers by way of the over-the-counter (OTC) market, the corporate introduced Tuesday.The f
Osprey Fund’s bitcoin belief is now accessible to retail buyers by way of the over-the-counter (OTC) market, the corporate introduced Tuesday.
The fund was fashioned two years in the past, and Osprey utilized to register the belief with the U.S. Securities and Change Fee (SEC) in the midst of final 12 months, mentioned Osprey CEO Greg King.
It joins a crop of recent bitcoin funds aimed squarely on the market-leading Grayscale Bitcoin Belief (GBTC) earlier than a bitcoin ETF is authorized by the SEC. This contains choices from Bitwise Asset Administration, BlockFi and CrossTower that goal to provide conventional buyers publicity to bitcoin with out having to the touch the asset itself.
Structured equally to GBTC, the Osprey fund has practically $80 million in property below administration (AUM) and could be accessed straight by accredited buyers and not directly by retail buyers by way of OTC buying and selling desks. (Grayscale is owned by Digital Forex Group, CoinDesk’s mum or dad firm.)
Osprey boasts a 0.49% administration payment in comparison with GBTC’s 2% annual payment, however the fund additionally has 0.3% in different bills from providers like crypto custody. King mentioned he doesn’t anticipate these further bills to stay round, nonetheless.
“We anticipate these prices will go down each over time and as AUM grows,” King mentioned. “Custody prices have gone down considerably over the previous few years and as these adjustments happen these financial savings will circulate on to buyers.”
Constancy Digital Property is the custodian for the Osprey fund, Grant Thornton is the auditor and Coin Metrics is the index supplier.
If the SEC begins to approve bitcoin ETFs, then the worth of funds like Osprey and GBTC might diminish considerably. In that case, Osprey would “look very carefully at changing” to an ETF construction, King mentioned.