In a market that was once dominated by a few Bitcoin products, there are now more and more products that provide investors with a way to get income from popular altcoins such as DOT.
Yesterday, Osprey Funds announced the launch of the Osprey Polkadot Trust Fund. According to a press release issued by the company, the fund will be listed on the OTCQX market “as soon as possible” and will be open to qualified investors with a minimum investment of US$25,000. Coinbase will act as the custodian of the fund.
The fund will allow investors to enter Polkadot, one of the largest Layer 1 smart contract chains, through familiar channels, and the fund will join the ranks of digital assets where stock investors can now gain exposure. These digital assets will Increasing.
Greg King, CEO of Osprey, said: “There is increasing interest in the next generation of cryptocurrency investment products. Osprey has just begun to launch a series of compelling investment funds that will provide exposure to some of the most popular tokens.”
Osprey positions itself as a competitor of the investment giant Grayscale. According to Grayscale’s website, Grayscale currently offers 14 types of digital asset investment trust funds. Osprey’s OBTC Fund (Osprey Bitcoin Trust Fund) claims to charge a 0.49% management fee, which it claims is “the lowest cost publicly tradable Bitcoin fund in the United States.”
The choice to provide Polkadot funds may be to gain an advantage in the competition with Grayscale. DOT is not among the assets that Grayscale provides funds, and it is not part of the “big market” trust. Although it is the fourth largest Layer 1 smart contract token by market value, this means that Osprey may be catering to those that have not yet provided services. Market demand.
King told Cointelegraph that the decision to provide DOT funds is a vote of confidence in the growing Polkadot ecosystem and an effort to provide a wider range of digital asset investment products.
He said: “Our next decision to launch the Polkadot Trust Fund is not only a vote of confidence, but also to address the market’s demand for DOT products. We believe that Polkadot has shown great hope and is still in a very early stage. Every product we launched has been researched by the Osprey team. The Osprey team believes that Polkadot is a sustainable encryption project with huge investment potential.”
Polkadot is a member of the non-Ethereum chain that has seen a surge in organic developer activity. Earlier this month, six top ecosystem projects jointly created a PINT (Polkadot Index Network Token) to fund the Polkadot Index Network Token, and Clover Finance made the migration of DeFi easier by launching the Ethereum to Polkadot bridge.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.