The Bitcoin financial services company Onramp launched a spot-bitcoin ( BTC ) trust for high net-worth investors. This trust takes advantage of bitcoin’s multisignature capability (multisig), allowing what Onramp refers to as multi-party custody, where separate custodians hold private keys in a multisig arrangement.

Onramp has hired qualified Custodian Kingdom Trust, and bitcoin financial services company Unchained Capital in order to create a multisig 2-of-3 model. This means that two of these three entities must sign a transaction to move client money. The goal is to provide clients with direct exposure to Bitcoin without the hassle or risk of trusting one custodian.

Each unit will be equal to one BTC. Clients will also be able process in-kind redemptions where they can redeem the bitcoin without having to trigger a tax event.

As of now, bitcoin exchange-traded fund (ETF) holders in the U.S. cannot hold bitcoin directly. Instead, they hold bitcoin futures. Grayscale bitcoin trust, the largest bitcoin fund in the world with $18,7 billion (GBTC), does hold BTC. However, it doesn’t allow redemptions.

Grayscale, which is a sister company of CoinDesk, stopped redemptions in 2014. They cited compliance with Securities and Exchange Commission rules, but some, such as Onramp and hedge fund Fir Tree Capital Management argue that Grayscale self-imposed the stoppage.

Michael Tanguma is the CEO and cofounder of Onramp. He told CoinDesk that “GBTC has done redemptions.” They stopped doing it in 2014/2015 because they wanted to increase their AUM (assets under manager).

Fir Tree has filed a lawsuit against GBTC because of the inability to redeem. Tanguma claims that Onramp’s multi-party custody agreement and in-kind redemptions, which can be processed following an initial 12-month locking period, set it apart from Grayscale.

Michael Tanguma is the CEO and cofounder of Onramp. He told CoinDesk that “it’s essentially what GBTC should have become.” “I believe that it is the future for how bitcoin will be managed.”

Tanguma replied that the plan would not need formal approval as bitcoin is not a security, but a commodity, according to the Commodity Futures Trading Commission. Onramp will also work with securities attorneys to obtain opinion letters to reduce the 12-month locking-up period. It will also work with all regulatory bodies to ensure that Onramp remains compliant across all jurisdictions in which it offers its service.