Osprey Funds is launching its Osprey Bitcoin Trust (OBTC) on the over-the-counter market (OTC) markets. The OBTC is similar to Grayscale’s Bitcoin Trust with a management fee of only 0.49%. The firm’s lower management fees intend to directly challenge Grayscale’s dominance on Bitcoin trust. Meanwhile, Fidelity digital custody services will look after Osprey’s Bitcoin Trust.
Osprey Bitcoin Trust Could Open Up Bitcoin Accessibility
The Osprey Bitcoin Trust (OBTC) could result in a major shift in the market for bitcoin access. Its website read:
“The Osprey Bitcoin Trust provides easy access to bitcoin. With a 0.49% management fee, it is the lowest cost solution.”
Osprey Funds’ CEO, Greg King, said:
“As of 1/14, the product met the requirements to become quoted under the ticker OBTC in the OTC market. Over the next 30 days, the fund will pursue DTC eligibility and after February 14, all additional market makers are allowed to quote it. After that point it will be considered ‘fully launched.”
The company’s website further highlighted that accredited investors need to face a $25,000 minimum to buy directly into the trust. Shares will have a one-year lock-up period. However, its CEO added that the company will try to reduce that period to six months.
Osprey Bitcoin Trust Challenges Grayscale’s GBTC
Cryptocurrencies are hardly represented on the platforms of traditional financial services. Although, the Grayscale Bitcoin Trust (GBTC) and the Bitwise 10 Crypto Index Fund (BITW) are proving otherwise.
With the continual rise of Bitcoin’s popularity, its value has even increased. In Q4 2020, Grayscale processed over $3 billion into its trusts while Bitwise processed over $500 million in December 2020.
Grayscale Bitcoin Trust charges a management fee of 2% while Bitwise charges 2.5%. By launching a Bitcoin Trust with a lower management fee of only 0.49%, Osprey is directly challenging Grayscale with the continual rise of Bitcoin’s popularity. The company has even claimed that OBTC is its flagship offering.