In brief
Osprey Funds launched its Bitcoin Trust earlier this week.
According to Osprey Funds CEO Greg King, the goal is to take Bitcoin mainstream.
In the future, the fund might turn into an ETF.
When digital asset solutions company Osprey Funds launched its Osprey Bitcoin Trust two days ago, it entered a market dominated by a few big players. The biggest among them is Grayscale Investments, which has notched up $40 billion in AUM across its various trusts. But according to Osprey Funds CEO Greg King, the fund isn’t set up to compete with the likes of Grayscale.
Instead, King wants the Osprey Bitcoin Fund to make investing in Bitcoin easier for people who—while they may have had limited exposure to the market previously—have never fully embraced cryptocurrencies.
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“Our core audience is someone who may have a wallet, who may have dabbled in crypto, but the bulk of their assets are managed by an advisor,” King told Decrypt, adding, “We think Bitcoin is a very compelling additional exposure, and we’re just trying to make it easier for them at a reasonable price.”
King explained that his bullish outlook on Bitcoin is what fundamentally led him to launching a Bitcoin fund.
“Not only does Bitcoin have immense long-term appreciation potential, it also provides portfolio diversification,” King said. In addition, he said Bitcoin has reached—or is about to reach—the point where enough people believe it is a store of value, and he suggests it is very unlikely for the cryptocurrency to take a step backwards now.
The fund may turn into a Bitcoin ETF
While Osprey Funds’ Bitcoin Trust is barely into its third day of trading, King—who has launched several ETFs in his career to date—suggested the trust could be next in line to be repurposed into an ETF.
“We have big hopes for the trust, and people always ask about ETFs, if it becomes clear that an ETF is doable, we’ll be certain to take a close look at that,” King said, adding, “I can’t promise anything, but it is possible to convert these things into ETFs.”
According to King, Bitcoin has already laid the groundwork for a bright future, because now that it has become widely accepted as a store of value, it is unlikely to take a step backwards.
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“To a certain extent, once something becomes widely accepted as a store of value, then it tends to be difficult to dislodge,” King said. He added that the institutional interest Bitcoin is generating remains in its early stages.
But with Tesla stepping in and picking up $1.5 billion of Bitcoin, that is all starting to shift.
Binance Coin Explodes 45% on Heels of Bitcoin Bull Run; What’s Next
Binance Coin (BNB/USD) emerged as the best-performing asset among the top ten cryptocurrencies this week as traders measured its potential against a flurry of adoption-friendly updates.
The fifth-largest cryptocurrency, which serves as a settlement token in the Binance exchange and its other ventures, surged to a new record high of $196.96 during the early European session Thursday. That brought its net gains this week to roughly 45 percent. Meanwhile, the upside move pushed its year-to-date profits to a staggering 434 percent.
The Binance Coin market’s gains appeared after Bitcoin established a new record high of $52,640 on Coinbase and started correcting lower afterward. So it seems, traders flocked into BNB after anticipating a broader downside correction in the Bitcoin market. While Bitcoin’s sell-off was modest, that did not stop BNB from climbing further into the Wednesday and Thursday sessions.
Because Fundamentals
Binance Coin appeared like a more attractive choice to traders on Bitcoin’s downside correction because of a flurry of reason. At first, they noted a dramatic spike in the transactions on Binance Smart Chain, a blockchain that enables the creation of smart contracts and the staking mechanism for BNB.
Many analysts noted that the BSC community’s decision to lower the gas fees from 15 Gwei to 10 Gwei led to many transactions on the network. Nonetheless, even Binance CEO Changpeng Zhao admitted that he is clueless about what caused the upsurge.
It appears that many traders speculated a drop in BSC’s Gwei fees coupled with its booming network load as a cue for further BNB adoption. Earlier in the month, rising Ethereum fees assisted many of its rivaling blockchain projects to establish record peaks. That includes Cardano, Avalanche, and Polkadot.
On the other hand, Binance Coin was already flying higher on the heels of Binance’s new ventures, including a decentralized exchange project and a valuation boom in its undertaken DeFi protocols, including KAVA, Venus, and Cosmos. BNB’s demand also surged due to Binance’s investments in promising blockchain projects, including Polkadot-based Plasm Network.
What’s Next for Binance Coin?
Technically, Binance Coin needs a downside correction.
BNB/USD currently looks extremely overbought, with its Relative Strength Indicator’s reading above 70. That typically prompts an asset to correct lower or consolidate sideways until the RSI neutralizes to below 70. Should it happen, the BNB/USD rate risks falling towards the 20-4H moving average (green).
Conversely, a trend continuation could take Binance Coin above $200 (to test the Symmetrical Triangle target).