Osprey CEO Seeks To Manage The GBTC Trust With Annual Management Fee By 0.49%

Key Points:

• Osprey Funds is the latest to call out Barry Silbert’s Grayscale Investments over its Bitcoin trust’s deep discount.
• Osprey announced Friday that it would lower the $12 billion GBTC’s management fee from its current 2% to 0.49% in an open letter to Silbert.
• Osprey disclosed that it is looking at options for redeeming shares in its own Bitcoin trust, which trades under the symbol OBTC.

The Osprey CEO wrote to DCG seeking to manage the GBTC trust, will reduce management fees and implement the redemption plan as soon as possible.

This Friday, Greg King, CEO of digital asset management company Osprey Funds, said in an open letter to Digital Currency Group (DCG) CEO Barry Silbert that his company is the management of GBTC’s “best-positioned third party.”

If appointed as administrator of GBTC, Osprey will reduce GBTC’s annual management fee by approximately 75% to 0.49%. Greg King also said it would seek to implement the redemption program as soon as possible.

“​​We would seek to implement a redemption program as soon as possible,” King said in the letter.

DCG is the parent company of Grayscale Investments, which has been operating the fund since GBTC launched in 2013. GBTC currently has approximately $12 billion in assets and charges a 2% management fee. By the standards of passive encryption products, the management fee of GBTC is obviously high.

Grayscale filed a lawsuit against the SEC in June after the agency rejected its request to turn GBTC into an ETF. According to the firm, turning GBTC into an ETF will satisfy the wishes of GBTC investors.

King’s letter follows a year-end proposal from Valkyrie Investments to acquire GBTC. Steven McClurg, a co-founder of Valkyrie, stated in a letter at the time that his company would enable orderly redemptions at net asset value and reduce GBTC’s fee to 0.75%. Osprey is lowering the bar for even lower fees with its 0.49% proposal.

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Harold

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