Two new institutional products based on the eighth largest cryptocurrency are hitting the market, a sign that issuers are diversifying to meet the growing demand for cryptocurrency investment vehicles beyond Bitcoin and Ethereum.
Digital asset investing specialist Osprey Funds, LLC announced last week that it would launch a new product for private placement, the Osprey Polkadot Trust, only for Valkyrie Digital Assets to announce its own DOT fund within a few minutes. days later.
Valkyrie Digital Assets also filed for a Bitcoin ETF, one of eight, with the SEC.
About DOT funds
DOT, the native token of the Polkadot network, is the eighth largest cryptocurrency in the world. With a current market capitalization of over $ 38 billion, DOT is also currently one of the fastest growing blockchains in the world.
The Osprey Polkadot Trust, which will invest exclusively in DOT, will have Coinbase as its custodian.
The trust charges a management fee of 2.5%, although this fee is waived until January 2023.
In their press release, Osprey CEO Greg King said that the trust “will allow accredited investors who want DOT exposure to obtain titled and controllable property through an investment vehicle based. in the USA.
Meanwhile, the product Valkyrie will also invest in DOT, but will additionally offer customers “the 8% return of Valkyrie staking the asset through Coinbase Custody,” according to CoinDesk.
Like the Osprey Trust, the Valkyrie DOT Fund will also waive the management fee for 2 years. However, the Valkyrie product only has a management fee of 2%.
What is Polkadot?
Polkadot is a platform that works to enable Web 3.0, a decentralized version of the Internet. Polkadot’s technology offers many add-ons not offered by other cryptocurrencies, according to its website, including better scalability and forkless infrastructure.
“Polkadot has the promise of being a faster network with lower gas costs that can support many different assets,” Steven McClurg, chief investment officer of Valkyrie said in an interview with CoinDesk.
Osprey also offers the Osprey Bitcoin Trust (OBTC), the “cheapest publicly traded bitcoin fund in the United States,” with an annual management fee of just 0.49%. According to King, many investors interested in Osprey’s Bitcoin product have also expressed interest in the new DOT fund.
“The appetite for next-generation crypto investment vehicles is only increasing,” King added.
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