Polkadot Regains Bullish Momentum as Osprey Launches Polkadot Trust

Crypto asset management company Osprey Funds announced the establishment of the Osprey Polkadot Trust to invest in Polkadot’s DOT token.

According to the official website, the Polkadot Trust’s 2.5% management fee will be exempted before January 1, 2023. The fund will be opened to qualified investors in the form of private placement at a price of no less than $25,000.

Osprey may choose the Polkadot fund to expand his own advantages. In contrast, although Grayscale digital asset management company has gone through the process of creating a Polkadot Trust, the final steps have yet to be finalized before institutional investors can leverage it for trade.

Therefore, Osprey’s Polkadot Trust is the only one of its kind currently on the market.

Polkadot ranks No.8 in market capitalization, with a market cap of $33,730,655,035, and has risen by 18.87% within the last 7 days.

Polkadot (DOT) Price Analysis

Source: DOT/USD Daily via TradingView

Polkadot (DOT) presented an inverted hammer candlestick on April 17, prompting the market to experience strong seller pressure after reaching the new all-time high of $48.33. Polkadot has since pulled back slightly, trading at $36 at the time of writing, after having consolidated between $32 and $34 for a few days. Currently, the bulls are actively pushing prices above the Exponential Moving Average ribbon.

The gradually flattening moving average indicates that the market’s bearish trend is gradually weakening. But the trading volume for DOT has failed to grow, which means that DOT bulls are hesitant. The MACD indicator is glued below the zero axes, which indicates the possibility of a bullish crossover, but that remains to be confirmed in the upcoming days.

The RSI indicator reaches 50 equilibrium points, which also implies that the market is in equilibrium, and buying and selling pressures are currently on par.

Therefore, the power struggle between the bulls and the bears in the next few days will determine how DOT trends in the short term.

Image source: Shutterstock


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DOT over the counter? Osprey Funds set to launch Polkadot investment trust

In a market once dominated by a handful of BTC vehicles, there are now a growing number of products offering investors access to gains from popular altcoins like Polkadot. 

Yesterday, Osprey Funds announced the launch of the Osprey Polkadot Trust. The fund, which will be available to accredited investors with a $25,000 minimum, is set to be listed on the OTCQX market “as soon as possible,” per a press release from the company. Coinbase will serve as the fund’s custodian. 

The fund will give investors access to one of the largest layer one smart contract chains via familiar rails, and joins a growing list of digital assets equity investors can now gain exposure to.

“The appetite for next generation crypto investment vehicles is only increasing,” said Osprey CEO Greg King. “Osprey is just getting started on a series of compelling 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 trusts, per the Greyscale website. Osprey’s OBTC fund boasts a .49% management fee, which they claim makes it the “lowest-cost publicly traded bitcoin fund in the U.S.”

The choice to offer a Polkadot fund may be in an effort to gain an edge on Greyscale. DOT is not among the assets Greyscale offers funds for, and it isn’t part of the “Large Cap” trust despite being the fourth-largest layer one smart contract token by marketcap, meaning Osprey may be catering to a market demand that isn’t presently serviced.

King told Cointelegraph that the decision to offer a DOT fund was part 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 launch a Polkadot trust next is both a vote of confidence and also addresses the market’s need for access vehicles. We believe Polkadot shows significant promise and is still in the very early stages. Every product we launch will be something the Osprey team has researched and believes is a sustainable crypto project with significant investment potential,” he said.

Polkadot is among the growing number of non-Ethereum chains that have been seeing a spike in organic developer activity. Earlier this month six top ecosystem projects joined together to create an index token, PINT, and Clover Finance made DeFi migration easier with an Ethereum-to-Polkadot bridge.