{"id":155735,"date":"2021-01-16T01:06:28","date_gmt":"2021-01-15T22:06:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/gbtc-has-a-new-a-competitor-in-the-otc-bitcoin-trust-market\/"},"modified":"2021-01-16T01:06:28","modified_gmt":"2021-01-15T22:06:28","slug":"gbtc-has-a-new-a-competitor-in-the-otc-bitcoin-trust-market","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/gbtc-has-a-new-a-competitor-in-the-otc-bitcoin-trust-market\/","title":{"rendered":"# GBTC has a new a competitor in the OTC Bitcoin trust market"},"content":{"rendered":"

“# GBTC has a new a competitor in the OTC Bitcoin trust market <\/strong>”
\n<\/p>\n

A firm called Osprey Funds is offering an over-the-counter, or OTC, Bitcoin (BTC) trust under the ticker symbol OBTC. The trust is similar to Grayscale\u2019s Bitcoin Trust, known as GBTC.<\/p>\n

\u201cThe Osprey Bitcoin Trust provides easy access to bitcoin,\u201d the firm\u2019s website says<\/a>. \u201cWith a 0.49% management fee, it is the lowest cost solution.\u201d Osprey is an entity that \u201cbuilds digital asset solutions for intelligent investors,\u201d claiming OBTC as its \u201cflagship offering,\u201d the website adds<\/a>. <\/p>\n

“OBTC began being quoted in the OTC market today, Friday 1\/15,” Osprey Funds’ CEO, Greg King, told Cointelegraph, adding:<\/p>\n

“As of 1\/14, the product met the requirements to become quoted under the ticker OBTC in the OTC market.\u00a0Over 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.'”<\/p><\/blockquote>\n

Competitor Grayscale has become one of the largest Bitcoin holders in the world, possessing over 500,000 BTC as of November 2020. The firm is behind GBTC, which serves as a way to buy Bitcoin in stock share form. Each share of GBTC represents<\/a> a fraction of a Bitcoin \u2014 0.00094 BTC per share at the time of publication, based on Grayscale\u2019s website. Interested parties buy and sell shares over-the-counter, available on mainstream brokerage platforms. <\/p>\n

GBTC, in part, offers the public easier access to Bitcoin through more traditional avenues, without requiring them to custody their own funds. Grayscale\u2019s Bitcoin Trust comes with a yearly 2% management fee, however. Osprey\u2019s recently unveiled BTC trust touts a fee of 0.49%. \u201cOsprey is likely trying to capture some of that market share by undercutting GBTC\u2019s fee, according to Bloomberg Intelligence,\u201d Bloomberg wrote<\/a> in a report on Friday.\u00a0Osprey has called on Fidelity as the custodian for the endeavor.<\/p>\n

\u201cWe are always happ<\/a>y to see digital currency access products enter the market, especially here in the U.S.,\u201d Grayscale CEO Michael Sonnenshein told Bloomberg. <\/p>\n

\u201cAccredited investors face a $25,000 minimum to buy directly into the trust,\u201d Bloomberg wrote. \u201cShares have a lock-up period of one year before they can be sold in the secondary market.\u201d In contrast, Grayscale\u2019s Bitcoin Trust requires assets to be locked up for six months. Osprey could see its 12-month lock-up cut in half in the future, however, based on King\u2019s comments to Bloomberg. <\/p>\n

Wilshire Phoenix, an investment firm, filed for a similar product with the Securities and Exchange Commission in June 2020. <\/p>\n