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The cryptocurrency financial services firm Blockfi has launched a bitcoin-based trust that offers custody from Fidelity Digital Asset Services. Blockfi\u2019s investment vehicle aims to give investors exposure to the leading crypto asset as bitcoin assets under management (AUM) was over $29 million on February 8, 2021.<\/strong><\/p>\n On Tuesday, the lender and financial services company Blockfi<\/a> launched its bitcoin trust<\/a> as it is managed by Blockfi Management LLC, a wholly-owned subsidiary of Blockfi.<\/p>\n The trust will charge a sponsor fee of 1.75% and the company leverages custodial services from Fidelity\u2019s crypto arm. According to the announcement, the company will use Coin Metrics\u2019 index services and pricing data. The company Grant Thornton LLP will be the Blockfi Bitcoin Trust\u2019s financial auditor.<\/p>\n Blockfi\u2019s trust will compete with Grayscale<\/a>\u2019s Bitcoin Trust (GBTC) and it offers an annual fee that is .25% lower than GBTC\u2019s fee rating. There are approximately 685,500 shares outstanding and each share represents 43.64 BTC<\/a> according to Feb. 8 2021 data.<\/p>\n \u201cGiven the level of institutional activity in recent months and demand for new, professional-grade investment vehicles, the timing of Blockfi Bitcoin Trust is ideal,\u201d Zac Prince, the founder and CEO of Blockfi said during the announcement.<\/p>\n Prince added:<\/p>\n As we work to broaden the availability of this vehicle to retail brokerages, we expect this product will facilitate greater investments in digital assets \u2013 at the core of Blockfi\u2019s mission in bridging crypto with traditional finance.<\/strong><\/em><\/p>\n<\/blockquote>\n <\/ins> <\/ins> <\/p>\n The recent Blockfi news follows the company\u2019s Visa credit card launch<\/a> that offers BTC<\/a> rewards. Furthermore, a few days prior in December 2020, Blockfi launched a cryptocurrency trading platform<\/a>. As far as Blockfi\u2019s trust is concerned, Fidelity Digital Assets looks forward to its partnership with the crypto financial services firm.<\/p>\n \u201cThe digital asset ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions,\u201d the head of sales and marketing for Fidelity Digital Assets, Christine Sandler said.<\/p>\n Sandler continued:<\/p>\n An increasingly wide range of investors seeking access to bitcoin has emphasized the need for a more diversified set of products offering exposure to the asset. Like Blockfi, we believe pairing innovative products with institutional-grade solutions that provide high caliber security will help enable broader adoption of digital assets.<\/strong><\/em><\/p>\n<\/blockquote>\n Blockfi is not the only competitor trying to compete with Grayscale\u2019s bitcoin trust product, as the crypto asset manager Bitwise recently filed<\/a> to publicly trade its bitcoin fund. On February 2, 2021, Bitwise Asset Management, announced it had filed a Form 211 with the U.S. Financial Industry Regulatory Authority (FINRA) for the Bitwise Bitcoin Fund (BBF).<\/p>\nBlockfi Launches a Competitive Bitcoin Trust With a Sponsor Fee of 1.75%<\/h2>\n
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Fidelity Digital Assets Sees the Need for a More Diversified Set of Products Offering Exposure to the Asset<\/h2>\n
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