Banking Law

Bitcoin Fee Wars Erupt as Upstart Targets Grayscale’s Billions

Jan. 15, 2021, 3:51 PM

The fledging world of cryptocurrency funds is set to welcome a bold new entrant.

The Osprey Bitcoin Trust (ticker OBTC) will launch in the over-the-counter markets with a 0.49% management fee, according to the Osprey Funds website. Fidelity Digital Assets will provide custody services.

OBTC’s fee is roughly a fourth of the cost of its main rival, the $28 billion Grayscale Bitcoin Trust (ticker GBTC), which charges 2%. Demand for products such as GBTC has skyrocketed as Bitcoin’s dizzying rally reached all-time highs above $40,000. That frenzy sent more than $3 billion of inflows into Grayscale Investments products...

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