3 months ago 1 min read

Osprey CEO Wants to Manage GBTC Trust for 0.49% Annual Management Fee

grey king-osprey-barry silbert-grayscale-valkyrie

In a letter to DCG, the Osprey CEO expressed a desire to manage the GBTC trust, cut administration costs, and expeditiously carry out the redemption plan.

Osprey Funds CEO Greg King stated in an open letter to Digital Currency Group (DCG) CEO Barry Silbert on Friday that his organization is the "best-positioned third party" for the management of the Global Bitcoin Trust.

If appointed as GBTC's administrator, Osprey will lower the organization's yearly administration fee by around 75%, to 0.49%. Greg King also stated that the redemption program would be put into place as quickly as possible. King said in the letter.

“​​We would seek to implement a redemption program as soon as possible,”

Grayscale Investments, which has been running the fund since GBTC's debut in 2013, is owned by DCG. GBTC now has assets worth around $12 billion and levies a 2% management fee. Evidently excessive by the norms of passive encryption products, GBTC's administration charge.

In response to the SEC rejecting its attempt to convert GBTC into an ETF, Grayscale launched a lawsuit against the body in June. The company claims that converting GBTC into an ETF will fulfill the demands of GBTC investors.

King's letter comes after Valkyrie Investments' year-end offer to buy GBTC. In a letter at the time, Valkyrie co-founder Steven McClurg promised that his business would provide orderly redemptions at net asset value and lower GBTC's fee to 0.75%. With its 0.49% plan, Osprey is lowering the threshold for further lower fees.

Great! You’ve successfully signed up.
Welcome back! You've successfully signed in.
You've successfully subscribed to Coin Aquarium.
Your link has expired.
Success! Check your email for magic link to sign-in.
Success! Your billing info has been updated.
Your billing was not updated.