A company called Osprey Funds offers an over the counter, or OTC, Bitcoin (BTC) under the ticker symbol OBTC. The trust is comparable to Grayscale’s Bitcoin Trust (GBTC).
“The Osprey Bitcoin Trust provides easy access to bitcoin,” the company’s website said says. “With a management fee of 0.49%, this is the cheapest solution.” Osprey is an entity that “builds digital asset solutions for intelligent investors” and claims OBTC as its “flagship offering,” the website adds.
“OBTC began to be listed in the OTC market today, Friday, January 15,” Osprey Funds CEO Greg King told Cointelegraph, adding:
“As of 1/14, the product met the requirements to be listed under the ticker OBTC in the OTC market. Over the next 30 days, the fund will strive for DTC eligibility and after February 14, all other market makers may quote it. After that point it is considered ‘fully launched’. “
Competitor Grayscale has become one of the largest Bitcoin holders in the world, with more than 500,000 BTC since November last year. The company is behind GBTC, which serves as a way to buy Bitcoin in stock form. Any share of GBTC represents a fraction of one Bitcoin – 0.00094 BTC per share at time of publication, based on Grayscale’s website. Interested parties buy and sell shares over the counter, available on regular brokerage platforms.
GBTC, in part, provides the public with easier access to Bitcoin through more traditional avenues, without having to hold their own funds. However, Grayscale’s Bitcoin Trust comes with a 2% annual management fee. Osprey’s recently unveiled BTC trust touts a 0.49% fee. “Osprey is likely trying to capture some of that market share by undercutting GBTC fee, said Bloomberg Intelligence,” Bloomberg wrote in a report on Friday. Osprey has engaged Fidelity as custodian for the company.
“We are always happy to see digital currency access products hit the market, especially here in the US,” Michael Sonnenshein, Grayscale CEO, told Bloomberg.
“Accredited investors are dealing with a minimum of $ 25,000 to buy directly into the trust,” Bloomberg wrote. “Shares have a one-year lock-up period before they can be sold on the secondary market.” In contrast, Grayscale’s Bitcoin Trust requires assets to be locked up for six months. However, Osprey could halve his lock-up from 12 months into the future, based on King’s comments to Bloomberg.
Wilshire Phoenix, an investment company, submitted for a comparable product with the Securities and Exchange Commission, or SEC, in June 2020.