BlockFi Launches Its Bitcoin Trust for Global Institutions

The digital financial services company BlockFi launched its bitcoin trust Tuesday with a 1.75 percent management fee and custody from Fidelity Digital Assets. The company follows Bitwise, Grayscale and Osprey Funds in offering accredited investors passive exposure to bitcoin through a […]

article-image
share

key takeaways

  • The BlockFi Trust comes with with a 1.75 percent management fee and custody from Fidelity Digital Assets
  • Trust shares are available to global institutions and will later extend to individual accredited investors

The digital financial services company BlockFi launched its bitcoin trust Tuesday with a 1.75 percent management fee and custody from Fidelity Digital Assets.

The company follows Bitwise, Grayscale and Osprey Funds in offering accredited investors passive exposure to bitcoin through a traditional investment vehicle without the challenges of buying and securely storing it themselves. It has almost $30 million in bitcoin holdings as of Monday, according to its website.

Shares in the trust are available to global institutions and other qualified investors and will later open to accredited individual investors in the U.S., according to a Tuesday press release.

BlockFi has been swiftly building out its suite of financial services since its inception. The three-year-old startup began as a provider of U.S. dollar loans backed by cryptocurrency. It has since expanded its product suite for retail customers (which includes a high interest deposit account and bitcoin-back credit card) and launched institutional services. 

In December it landed a partnership with Fidelity Digital Assets, the investment giant’s bitcoin custody and trade execution business, to issue crypto-backed loans to its institutional customers. It generated about $100 million in revenue in 2020, according to research from The Block.

The New Jersey-based BlockFi has raised $158.7 million to date and has said it plans to go public in the second half of 2021 through a special purpose acquisition company.

Tags

    Upcoming Events

    Javits Center North | 445 11th Ave

    Tues - Thurs, March 18 - 20, 2025

    Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

    Industry City | Brooklyn, NY

    TUES - THURS, JUNE 24 - 26, 2025

    Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

    Old Billingsgate

    Mon - Wed, October 13 - 15, 2025

    Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

    recent research

    Research Report Templates (4).png

    Research

    Even as the most performant, widely used blockchain today, Solana is still far from perfect, prompting some teams to iterate upon some design choices while maintaining compatibility at the SVM execution layer. This report analyzes three emergent SVM chains (Eclipse, Atlas, and Fogo) to understand the motivations behind the technical architectures, as well as the current state and future outlook.

    article-image

    Fundamental investors are turning to token buybacks

    article-image

    A Glassnode report found that the accumulation range for bitcoin is ‘weak,’ indicating a decline in demand

    article-image

    CEO Bam Azizi said he’ll only be seeking stablecoin-exclusive funding rounds from now on

    article-image

    Sponsored

    WalletConnect is set to deepen its role by integrating with emerging standards and expanding its utility across different onchain sectors

    article-image

    Zeta Markets has shipped testnet for Bullet, a low-latency “network extension,” the team told Lightspeed exclusively

    article-image

    Having passed Congress, the resolution will now head to Trump’s desk