Onramp’s Spot Bitcoin Trust Offers Multi-Party Custody with Physical Redemption

According to reports, Bitcoin financial services company Onramp has launched a spot Bitcoin trust for high net worth investors, which utilizes multiple signatures to achieve multi-party custody, with a group of independent custodians each holding a private key. Each unit of the trust will be equivalent to one Bitcoin, and customers will be able to process physical redemptions. They will redeem the underlying assets (Bitcoin) without triggering taxable events.

Onramp Launches Bitcoin Trust with Multiple Signature Functionality

Bitcoin is a digital currency and decentralized payment system that operates without the involvement of intermediaries. Despite several controversies, the demand for Bitcoin keeps increasing due to its unique features like decentralization, lower transaction fees, and quick cross-border transfers.
However, owning Bitcoin requires a secure wallet and a level of technical knowledge that many people lack. This is where Bitcoin financial services companies like Onramp come in. Onramp has recently launched its spot Bitcoin trust that offers multi-party custody with physical redemption.

What is Onramp?

Onramp is a Bitcoin financial services company that provides an easy and secure way to buy, sell, and store Bitcoin. It operates using a multi-signature wallet, meaning the ownership of a wallet requires the approval of multiple parties. It also provides Bitcoin custody and escrow services for individuals and institutions.

What is a Spot Bitcoin Trust?

A Bitcoin trust is an investment vehicle that provides exposure to Bitcoin without the need to directly purchase and store the asset. The trust serves as a vehicle to invest in Bitcoin, while the asset is securely held by a third-party custodian.
A spot Bitcoin trust is a type of Bitcoin trust where the investment value is based on the current price of Bitcoin. This means that when an investor buys a unit of the trust, they are buying a specific amount of Bitcoin at the current market price.

Multi-Party Custody for High Net Worth Investors

Onramp’s spot Bitcoin trust offers multi-party custody for high net worth investors. This means that the trust uses multiple signatures to achieve multi-party custody, and a group of independent custodians each hold a private key.
These custodians work in collaboration to manage and store the Bitcoin holdings. This multi-party setup ensures that no single entity controls the entire trust, meaning that the risk of theft or loss is minimized.

Physical Redemption without Taxable Events

Onramp’s spot Bitcoin trust is unique in that it offers physical redemption without triggering taxable events. This means that customers can redeem the underlying assets (Bitcoin) without incurring capital gains tax.
The trust is structured in such a way that when a customer redeems their Bitcoin holdings, the trust transfers ownership of the underlying assets to the customer’s wallet. The customer can then sell or use the Bitcoin as they wish without incurring any tax liability.

Conclusion

Over the last few years, Bitcoin has gained enormous popularity among investors, traders, and institutions. However, owning and securely storing Bitcoin can be a technical challenge for many people. Onramp’s spot Bitcoin trust offers multi-party custody with physical redemption, making it a more accessible and convenient way to invest in Bitcoin.
This unique investment vehicle is suitable for high net worth investors who want exposure to Bitcoin without the hassle of direct ownership. The multi-party custody and physical redemption offer enhanced security and liquidity, while the structure of the trust ensures that customers can redeem their assets without triggering taxable events.

FAQs

1. What is a Bitcoin trust?
A Bitcoin trust is an investment vehicle that provides exposure to Bitcoin without the need to directly purchase and store the asset.
2. What is spot Bitcoin?
Spot Bitcoin is a type of Bitcoin trust where the investment value is based on the current price of Bitcoin.
3. Who is Onramp suitable for?
Onramp’s spot Bitcoin trust caters to high net worth investors who want exposure to Bitcoin without the hassle of direct ownership.