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 Trade Fee (SEC) in the midst of final yr, stated Osprey CEO Greg King.
It joins a crop of latest bitcoin funds aimed squarely on the market-leading Grayscale Bitcoin Belief (GBTC) earlier than a bitcoin ETF is authorised by the SEC. This consists of choices from Bitwise Asset Administration, BlockFi and CrossTower that purpose to present 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 belongings below administration (AUM) and may be accessed immediately by accredited buyers and not directly by retail buyers by way of OTC buying and selling desks. (Grayscale is owned by Digital Foreign money Group, CoinDesk’s dad or mum firm.)
Osprey boasts a 0.49% administration charge in comparison with GBTC’s 2% annual charge, however the fund additionally has 0.3% in different bills from providers like crypto custody. King stated he doesn’t count on these further bills to stay round, nevertheless.
“We count on these prices will go down each over time and as AUM grows,” King stated. “Custody prices have gone down considerably over the previous few years and as these modifications happen these financial savings will move on to buyers.”
Constancy Digital Belongings 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 stated.