Osprey BNB Chain Trust: Accessing Crypto’s 4th Largest Token* Despite U.S. Restrictions

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U.S. investors looking to diversify beyond Bitcoin and Ethereum face a significant hurdle when it comes to (BNBUSD), the fourth-largest cryptocurrency* with a market cap of approximately $80 billion, yet regulatory restrictions have mostly blocked American investors from accessing it directly.

Osprey BNB Chain Trust (OBNB) solves this problem by offering a regulated vehicle for gaining BNB exposure through standard brokerages that offer access to the over-the-counter market (OTCQX).

A Bridge to a Restricted Asset

The regulatory environment has made it difficult for U.S. investors to buy BNB directly. Major exchanges like Coinbase and Kraken don't list the token, leaving Americans without access to one of crypto's strongest performers.

OBNB addresses this gap by holding actual BNB tokens in secure cold storage while issuing shares that trade on U.S. OTC markets. This structure allows investors to gain price exposure to BNB without navigating international exchanges or managing cryptocurrency wallets.

Why BNB Matters in a Crypto Portfolio

BNB began in 2017 as a simple utility token for trading discounts on Binance but has evolved into the foundation of a robust blockchain ecosystem:

• Powers the BNB Smart Chain, which processes millions of daily transactions
• Supports opBNB, an ultra-fast layer-2 solution with transaction fees below $0.0001
• Integrates with Greenfield, a decentralized storage network

This expanded utility has helped BNB maintain its position as a top-five cryptocurrency by market capitalization since 2021, demonstrating remarkable resilience during crypto market turbulence.

What further distinguishes BNB is its deflationary tokenomics. While Bitcoin slowly releases new coins until 2140, BNB started with 200 million tokens and systematically burns them quarterly. Already, 58 million BNB have been permanently removed, with burns continuing until the supply reaches 100 million. This contracting supply creates potential upward pressure on price assuming continued adoption.

How OBNB Works for Investors

The Osprey BNB Chain Trust makes BNB investment straightforward for traditional investors:

• Purchase shares through standard brokerage that offer access to the OTCQX market (ticker: OBNB)
• Hold in tax-advantaged accounts like IRAs
• Avoid complexity of cryptocurrency custody and security
• No K-1 tax forms (structured as a Delaware Grantor Trust)

With $55.6 million in assets under management, OBNB provides a familiar investment structure for those interested in BNB exposure. The trust charges a 2.50% annual management fee, competitive with similar cryptocurrency investment vehicles.

Investors should note that as a relatively new offering, OBNB currently has limited trading volume. Like many specialized OTC products in their early stages, liquidity is building gradually as awareness grows. As more investors learn about OBNB and liquidity increases, spreads are expected to tighten.

Institutional-Grade Management

Osprey Funds brings significant expertise to crypto asset management. Founded in 2019 and now managing approximately $390 million across six funds, the firm is led by financial veterans with experience at institutions including Barclays, Credit Suisse, and J.P. Morgan.

The team has launched over 100 exchange-traded products throughout their careers, bringing traditional finance discipline to digital asset investing. This institutional approach extends to OBNB's security practices, with assets held in cold storage through digital asset custodian Copper.

Accessing OBNB

Investing in OBNB is primarily done through standard brokerage accounts that support OTCQX trading. Always confirm with your broker to ensure they offer this capability.

For accredited investors, private placement is available with a $10,000 minimum investment, offering the opportunity to acquire shares at NAV without the secondary market premium.

As regulatory clarity continues to develop around cryptocurrency investing, specialized products like OBNB provide crucial access to otherwise restricted digital assets. OBNB offers a compliant pathway to participate in BNB's ecosystem growth for investors seeking diversified cryptocurrency exposure beyond the most common tokens.

To learn more about OBNB and Osprey's other digital asset products, visit ospreyfunds.io.

*Excluding Stablecoins

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