Trust-Minimized Ownership vs Centralized Price Exposure
In the wake of the early success of spot bitcoin ETFs in the US, which have collectively amassed over 200k.
You can download the report from here
This week, we wanted to take the opportunity to resurface a report written by Onramp co-founder & COO Jesse Myers roughly nine months ago. The report dissects the structure of BlackRock's spot bitcoin ETF vehicle (still a proposal at the time of writing) and compares it to Onramp's offering.
BlackRock Creates Bitcoin Vehicle: Half Good, Half Terrible
In the wake of the early success of spot bitcoin ETFs in the US, which have collectively amassed over 200k.
BTC in just over two months, it's important to reiterate the principles on which Onramp was founded.
Onramp provides trust-minimized ownership of actual bitcoin, while ETFs provide a centralized form of price exposure.
Please take a moment to read the report linked above or continue below for our current thoughts on the themes introduced therein.
Why Onramp Exists
Put most simply, we believe there is a better way for individuals and institutional allocators to obtain exposure to bitcoin. The first product we brought to market nearly a year ago, the Onramp Bitcoin Trust, represents a differentiated alternative to the ETFs which provides security-like exposure to bitcoin with a few key advan-tages.
In contrast with the ETFs, the Onramp Bitcoin Trust:
Allows for in-kind creation & redemption, with no taxable event
Utilizes Onramp's Multi-Institution Custody Solution to distribute counterparty risk across 3 distinct entities, eliminating single points of failure
Furthermore, unlike the slew of ETF issuers that exist today, Onramp is singularly focused on bitcoin, and bitcoin only. Education is a foundational component of our strategy; we aim to help investors understand the significance of bitcoin and cut through the noise of the broader digital asset space, enabling them to build long-term conviction in the asset.
A core element of bitcoin's value proposition is its decentralized nature - it is our view that parking massive amounts of bitcoin with a single centralized custodian infringes upon this pillar of the bitcoin thesis.
This notion is not purely forward looking. Historically speaking, the main pitfall of bitcoin ownership in its first fifteen years of existence has been the failure, either through negligence or malfeasance, of centralized custodians (from Mt. Gox to FTX, and many others in between.
You can download the report from here