BlockFi has filed an application with the US Securities and Exchange Commission (SEC) to register the Bitcoin Trust. If approved, the new tool will compete with Grayscale products.
The public application of BlockFi, a cryptocurrency-secured loan company, has little detail on the product’s characteristics. Typically, the shares of such trusts are traded at a large premium to the cryptocurrency in which the trust invests, and there are often large management fees 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 Q4 2020. In addition, investment firm Pantera Capital announced that it is working on the creation of a new cryptocurrency fund aimed at institutional investors.
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