Osprey Funds, a subsidiary of Rex Shares (constructs unique investment and trading products that promote flexibility and control), has offered an over-the-counter (OTC) Bitcoin trust under the ticker symbol OBTC, which is similar to Grayscale’s Bitcoin Trust (GBTC).
The website stated:
“The Osprey Bitcoin Trust provides easy access to bitcoin. With a 0.49% management fee, it is the lowest cost solution.”
Osprey is an entity that “builds digital asset solutions for intelligent investors,” claiming OBTC as its “flagship offering.”
Greg King, the CEO of Osprey Funds, 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 report said that competitor Grayscale has become one of the largest Bitcoin holders in the world by 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 fraction of a Bitcoin, 0.00094 BTC per share at the time of publication, based on Grayscale’s website. Interested parties buy and sell shares over-the-counter, available on mainstream brokerage platforms.
Look out @Grayscale you’ve got some new competition to deal with. Osprey Funds is offering access to BTC while touting lower fees to grab market share. Looks like the Bitcoin markets might be heating up fast in 2021. https://t.co/oE6NoHtRck — Cointelegraph (@Cointelegraph) January 16, 2021
Likewise, GBTC offers the public easier access to Bitcoin through more traditional avenues without requiring them to custody their own funds. Grayscale’s Bitcoin Trust comes with a yearly 2% management fee.
Osprey’s recently revealed BTC trust touts a fee of 0.49%.
Bloomberg Intelligence stated:
“Osprey is likely trying to capture some of that market share by undercutting GBTC’s fee.”
Also, Osprey has called on Fidelity as the custodian for the endeavor.
Michael Sonnenshein, the CEO of Grayscale, said:
“We are always happy to see digital currency access products enter the market, especially here in the U.S.”
Moreover, Bloomberg wrote:
“Accredited investors face a $25,000 minimum to buy directly into the trust. Shares have a lock-up period of one year before they can be sold in the secondary market.”
Thus, in contrast, Grayscale’s 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, based on King’s comments to Bloomberg.