BlockFi has filed an application with the U.S. Securities and Exchange Commission (SEC) to register the Bitcoin Trust. If approved, the new tool will compete with Grayscale products.
In the public application of the company BlockFi, which provides loans secured by cryptocurrencies, there is little detail about the product characteristics. Usually, the shares of such trusts are traded at a large premium to the cryptocurrency in which the trust invests, and often a large management fee is charged.
At the moment, such trusts are quite popular among institutional investors, since this product is the closest option to a bitcoin ETF. Earlier, the largest digital asset management company Grayscale Investments created six new trusts for various coins, including LINK and XTZ.
Grayscale recently announced that $3.3 billion was invested in the company’s funds in the fourth quarter of 2020. In addition, the investment company Pantera Capital reported that it is working on the creation of a new cryptocurrency fund aimed at institutional investors.