In a market once dominated by a handful of BTC vehicles, there is now a growing number of products that offer investors access to benefits from popular altcoins such as Polkadot.
Yesterday, Osprey Funds announced the launch of the Osprey Polkadot Trust. The fund, which will be available to accredited investors with a minimum of $ 25,000, will be listed on the OTCQX market “as soon as possible”, according to a company press release. Coinbase will serve as the fund’s custodian.
The fund gives investors access to one of the largest first-tier smart contract chains through trusted rails, and joins a growing list of digital assets that stock investors can now gain exposure to.
“The need for next-generation crypto investment vehicles is only growing,” said Greg King, CEO of Osprey. “Osprey has just launched a range of attractive investment funds that will provide access to some of the most exciting coins and tokens.”
Osprey has positioned itself as a competitor to investment giant Greyscale, which currently offers 14 digital asset investment funds, according to the Greyscale website. Osprey’s OBTC fund has a management fee of .49%, which they say makes the “ cheapest publicly traded bitcoin fund in the US. ”
The choice to offer a Polkadot fund may be an attempt to get a head start on grayscale. DOT is not among the assets for which Greyscale offers money, and it is not part of the ‘Large Cap’ trust, despite being the fourth largest tier one smart contract token by marketcap, meaning Osprey may be capitalizing on a market demand that isn’t currently serviced.
King told Cointelegraph that the decision to offer a DOT fund was part of a vote of confidence in the growing ecosystem, as well as an effort to offer a wider range of digital asset investment vehicles.
“Our decision to subsequently launch a Polkadot trust is both a vote of confidence and a response to the market need for access vehicles. We believe Polkadot is very promising and early stage. Every product we launch will be something The Osprey team has conducted research and believes it is a sustainable crypto project with significant investment potential, ”he said.
Polkadot is one of the growing number of non-Ethereum chains that have seen a spike in organic developer activity. Earlier this month, six top ecosystem projects came together to create an index token, PINT and Clover Finance made DeFi migration easier with an Ethereum to Polkadot bridge.