Blockfi – a crypto oriented entity – has successfully launched a Trust Fund which is based on Bitcoin. The fund is told to be providing a Bitcoin custodian facility backed by Fidelity Digital Assets Services. Blockfi aims to catch more customers to avail of its Bitcoin-based digital asset management services and lessen the gap between traditional finance and crypto space.
Blockfi is known as an entity that conducts financial services businesses by providing loans and financial assistance to customers. On the 9th of February, 2021, Blockfi managed to launch a Bitcoin-based fund which will be operated exclusively by Blockfi Management. The latter is a company 100% owned and controlled by Blockfi itself.
The company has launched Bitcoin Fund for acquiring more customers who will be availing of crypto asset management and custodian services. While management will be done by Blockfi Management, however, the custodian services will be provided by Fidelity Digital Assets Services.
On the other hand, Fidelity Digital Assets Services is a New York-based company offering digital assets’ custodial services to the institutional sector globally.
It was informed that there will be a sponsorship fee in the newly launched Bitcoin Trust payable by a customer @ 1.75%. This fee will be collected by an asset manager and paid to Fidelity for providing Bitcoin custodial services. Furthermore, Blockfi informed that it will use crypto pricing statistics, indexing, and data duly compiled by a leading entity in the field called Coin Metrics. While Grant Thornton LLP shall be the external auditor engaged for the Bitcoin Fund.
The world’s biggest Bitcoin Fund has been managed and operated by Grayscale Investments. It is said that the Bitcoin Trust launched by Blockfi will enter into competition with Grayscale’s fund. In addition, the annual fee charge of Grayscale is higher than that is proposed by Blockfi. It was informed by Blockfi that its annual fee charge is approximately 0.25% less than that of Grayscale.
As of today, there are at least 685,500 shares of Blockfi remaining to be acquired. The value per share is capped at 43.64 BTC.
Blockfi’s Founder and its current CEO, Zac Prince told that they are proud of launching the Bitcoin Fund at the right time. He stated that since the start of 2020, the demand for crypto assets has increased due to significant participation from the institutional sector. This growing demand has inculcated the need for establishing investment vehicles that are not only investment-friendly but also professional-grade, added Prince.
Prince suggested that as Blockfi strives for extending accessibility to this investment vehicle, this will bring in greater investments for digital assets. He added that the mission of Blockfi is to lessen the gap between traditional finance and crypto space.
Apart from launching Bitcoin Trust Fund, Blockfi also at the end of 2020, launched its digital asset trading and exchanging platform. Furthermore, the company has very recently offered Visa cards which also provides rewards based on Bitcoin.