NYDIG cuts bitcoin fee for investors to 0.3% as Morgan Stanley opens floodgates

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Bitcoin’s (BTC) institutional investment firm NYDIG has made an abrupt price cut for investors to gain exposure to BTC price promotions.

In a March 24 press release, the company confirmed that the access fee had been reduced to 0.3% with immediate effect.

Bitcoin buyers choose their premium

The move comes just days after NYDIG’s FS Select NYDIG Bitcoin Fund became one of three products Morgan Stanley selected to offer to its wealthy institutional clients.

As a potentially timely maneuver, the fee reduction could have ramifications for competitors, especially the Grayscale Bitcoin Trust (GBTC), whose management fees currently cost customers 2%.

“NYDIG’s new pricing structure is 50-75% lower than comparable Bitcoin passive access products available to investors and 0.30% is critically equal to the Fund’s true Total Expense Ratio, including a Big 4 review as well as legal, custodial.” – and accounting fees, “says the press release

As Cointelegraph reported, competition from newcomers explains why the GBTC premium – how much additional customers pay for bitcoin exposure in addition to net asset value – has fallen into record negative territory this year.

At one point, the premium offered a 15% discount off the spot price for shares in GBTC. By March 16, the last date data is available, it had rebounded to around -5.3%.

GBTC Premium vs. BTC / USD vs. Grayscale Stock Chart. Source: Bybt

Underbid gold access

NYDIG executives continued to build on the sense of anticipation CEO Robby Gutmann noted in a recent interview. Prior to Morgan Stanley’s announcement, Gutmann announced that a number of “groundbreaking” adoption steps would come from the institutional arena in the coming weeks.

“Spending matters and this will not be our last fee cut,” commented founder and CEO Ross Stevens in the press release.

“As the solid monetary benefits of Bitcoin are better understood, I believe it is only a matter of time before the devaluation of the US dollar causes Bitcoin’s market capitalization to outperform gold. Hence, it is aptly symbolic that NYDIG is now The total cost of Bitcoin access has made 25% lower than the total cost of gold access. “

Gold continued to decline this week when CNBC host Jim Cramer admitted that the precious metal’s performance “disappointed” him. Bitcoin, on the other hand, brought him “a lot of money”, he said.