Bull Bitcoin Prime offers investors an alternative to traditional financial products for accessing bitcoin.
On January 10, 2024, the approval of spot Bitcoin ETFs captured the attention of financial media, presented by many as the ideal solution for institutional investors, companies, and high-net-worth individuals. These instruments offer exposure to the price of bitcoin without the need to directly manage the asset, eliminating the challenges related to custody.
The arrival of spot ETFs has certainly facilitated entry for the general public. However, this narrative hides a very different reality: those with large assets do not need intermediaries to custody bitcoin on their behalf. Bitcoin is a bearer asset designed to be owned directly, permissionless, resistant to censorship and confiscation.
Although spot Bitcoin ETFs were designed primarily to facilitate access for institutional investors, these instruments have some disadvantages:
- you don’t actually own bitcoin, only shares of a fund;
- impossibility of transferring bitcoin to make payments or transactions;
- annual management fees ranging from 0.15% to 1.5% per year which over time end up eroding part of the returns;
- counterparty risk: you depend on the solvency of the fund manager and the custody company;
- no direct control: you cannot decide when and how to move your assets.
Relying on third-party custodians means giving up the fundamental properties that make Bitcoin revolutionary as a form of money.
For individuals and companies with significant assets, who have the ability and willingness to manage their own financial security, ETFs represent a non-optimal solution.
Bitcoin is liquid enough to support transactions of tens of millions of dollars through OTC (Over-The-Counter) desks. In these private channels, large operations are carried out in a single transaction, often agreeing on a fixed price. This allows avoiding so-called market slippage, that is, the price increase that would be obtained by placing a large order on a public exchange, allowing the exchange of large quantities of bitcoin without impacting the current price.
The advantages of OTC trading are multiple:
- privacy and confidentiality: transactions take place outside public order books, guaranteeing maximum discretion;
- price stability: elimination of slippage typical of large operations on public exchanges;
- rapid execution: accelerated settlement for large volumes;
- flexibility: negotiable prices and customized conditions.
Bull Bitcoin Prime
Since 2013, Bull Bitcoin has also served high-net-worth clients, maintaining an approach that respects Bitcoin’s fundamental principles: privacy, individual sovereignty, and direct control of one’s funds. Prime is the VIP service dedicated to high-net-worth individuals, companies, and institutions.
Unlike traditional exchanges, Bull Bitcoin operates as a fully automated OTC desk. There is no order book connecting buyers and sellers. When a client buys bitcoin, they buy it directly from the company. When they sell, Bull Bitcoin purchases with its own fiat liquidity.
The distinctive features of the Prime service include:
- unlimited volumes without slippage: whether it’s $10,000 or $10,000,000, the price displayed on the platform is what you pay. There are no transaction limits and the exchange rate does not vary based on volume. Bull Bitcoin applies a fixed spread of 2% on purchase, sale, and spending of bitcoin;
- immediate settlement: in the purchase of bitcoin, the transaction occurs instantly. As soon as you press the “Buy” button, the bitcoin is sent directly to the client’s wallet. In the sale, the exchange rate is locked at the moment the transaction enters the mempool, without waiting for timechain confirmations;
- privacy: the service is structured to guarantee the confidentiality of client operations;
- dedicated support: each Prime client has an expert Bitcoin referent, reachable by phone during business hours. There are no support tickets or forms to fill out, it is a direct relationship. Support extends to any technical issue, including bitcoin custody management.
Use cases
Bull Bitcoin serves a heterogeneous clientele with different needs. High-net-worth investors who wish to accumulate large quantities of bitcoin through DCA (Dollar Cost Averaging) can set up automatic purchases according to a pre-established schedule and count on the assistance of a dedicated account manager to develop the strategy best suited to their needs.
Companies that intend to integrate bitcoin into their corporate balance sheet benefit from segregated accounting, with the ability to accept payments in bitcoin and to pay employees or suppliers in the same way.
For institutional funds such as pension funds, endowments, and insurance companies, Bull Bitcoin offers access to high liquidity and insured custody solutions.
Additionally, it is possible to use Bull Bitcoin Prime for real estate transactions: selling a property for bitcoin or purchasing real estate with bitcoin becomes possible without the involvement of a bank. Bull Bitcoin acts as an intermediary, receiving funds from the buyer and sending bitcoin directly to the seller’s wallet, or vice versa.
Finally, early adopters who have accumulated bitcoin over time and need to liquidate considerable sums can count on fixed exchange rates and personalized consulting to identify the most appropriate strategy.
Bull Bitcoin is the world’s longest-running Bitcoin-only exchange. Strictly non-custodial. Try it here.
