- BlockFi has launched a bitcoin-based trust that offers custody from Fidelity Digital Asset Services.
- Grant Thornton LLP will be the financial auditor of the BlockFi Bitcoin Trust
- BlockFi has been expanding its services with the focus of capturing institutional investors and accredited private investors
BlockFi, leaders in cryptocurrency financial services, has announced the launch of the BlockFi Bitcoin Trust. According to the press release, the Trust is an investment vehicle designed to give institutional investors and accredited private investors easy access to Bitcoin.
BlockFi Launches the Bitcoin Trust
Lending and financial services firm, BlockFi, announced that its newly launched bitcoin trust will be managed by BlockFi Management LLC, a wholly-owned subsidiary of BlockFi. The bitcoin-based trust launched by BlockFi offers custody from Fidelity Digital Asset Services.
Speaking on its latest services, BlockFi announced;
The Trust will issue shares via private placements, and the investment objective of the Bitcoin Trust is for the value of the shares to reflect the value of BTC held by the Trustless the Trust’s expenses and other liabilities.
As per the official release, the Bitcoin trust will charge a sponsor fee of 1.75 percent. It also notes that the firm will leverage Coin Metrics’ index services and pricing data. The company Grant Thornton LLP will be the BlockFi Bitcoin Trust’s financial auditor.
BlockFi’s trust will compete with Grayscale’s Bitcoin Trust (GBTC) and it offers an annual fee that is .25% lower than GBTC’s fee rating.
The financial service provider noted that the Trust shares will be available to global institutions and other accredited investors in the near-term. It explained that the eligibility will be expanded to include more accredited individual investors in the United States.
On the Flipside
- A Serbian national has been arrested and extradited to the United States to face charges of defrauding investors
- According to the U.S. Department of Justice (DOJ), Antonije Stojilkovic was arrested for his involvement in defrauding investors out of more than $70 million through a cryptocurrency mining and binary options scam
- Stojilkovic and six accomplices, who were all arrested between July and October 2020, faces up to 20 years in federal prison if convicted
Bringing Bitcoin Closer to Institutional Investors
The announcement comes just weeks after the leading crypto financial services firm launched an over-the-counter (OTC) trading desk for institutional investors.
The dedicated BlockFi OTC traders will be located in the United States and Asia. The service will provide global support to institutional and ultra-high net worth clients.
More recently, BlockFi partnered with Visa to launch a credit card that offers rewards in Bitcoin for usage. In the closing days of 2020, BlockFi also launched a cryptocurrency trading platform.
In continuing the trend of exposing institutional investors to Bitcoin and other cryptos, BlockFi has launched its Bitcoin Fund. Zac Prince, the founder and CEO of BlockFi said during the announcement that the institutional move into Bitcoin makes the timing of BlockFi Bitcoin Trust is ideal.