BlockFi has announced the launch of its Bitcoin Trust.
It is an investment vehicle for investors who want to take a position on the price of BTC without having to buy and store tokens.
BlockFi is a financial services company that has already been in business for a few years and wants to provide a bridge between cryptocurrencies and traditional finance.
There are already other similar trusts, but that of BlockFi wants to be more convenient than the others.
For example, the incredible success of the famous Grayscale Bitcoin Trust shows just how much these products are appreciated by traditional finance, and in particular by those institutional investors who cannot invest directly in unregulated assets like bitcoin.
How will the BlockFi Bitcoin Trust operate
BlockFi’s Bitcoin Trust will charge a 0.25% lower annual fee than the Grayscale Bitcoin Trust.
These trusts issue shares whose value reflects the value of the BTC held by the trust, net of expenses and other liabilities. In this way, it is the company that creates and manages the trust that deals with issues regarding the purchase and storage of tokens, while investors can simply buy shares, as they are used to doing in traditional markets.
The BTC held in the BlockFi Bitcoin Trust will be held by Fidelity Digital Assets thanks to a custody solution created specifically for institutional investments.
BlockFi founder and CEO Zac Prince said:
“Given the level of institutional activity in recent months and demand for new, professional-grade investment vehicles, the timing of BlockFi Bitcoin Trust is ideal. As we work to broaden the availability of this vehicle to retail brokerages, we expect this product will facilitate greater investments in digital assets – at the core of BlockFi’s mission in bridging crypto with traditional finance”.
The trust started to receive subscriptions last Friday, and has already surpassed $30 million raised.