- Grayscale Investment, the largest digital currency asset manager, has announced the launch of five new cryptocurrency investment trusts.
- Since its inception, Grayscale has operated the Grayscale Bitcoin Trust (GBTC) and the Ethereum Trust (OTCQX: ETHE), amongst others; the latest development brings its number of investment products to over 12.
- The new funds will contain tokens such as Chainlink, Filecoin, Livepeer, Basic Attention, and Decentraland.
Grayscale is venturing deeper into the exciting frontiers of DeFi with the recent announcement that it is offering new trusts for investors. Five new cryptocurrency investment trusts have been selected for offering:
- Grayscale® Basic Attention Token Trust
- Grayscale® Chainlink Trust
- Grayscale® Decentraland Trust
- Grayscale® Filecoin Trust
- Grayscale® Livepeer Trust
Grayscale has continued to be a trailblazer in the digital asset management industry by increasing the number of its investment products to over 12, a portfolio which includes the famous Grayscale Bitcoin Trust (GBTC). Founded in 2013, the assets under Grayscale’s management have grown to over $42.9 billion.
Grayscale Allows Lesser-Known Altcoins To Shine
The leading crypto asset manager is offering investors more diversity in the manner they choose to invest their funds by adding five trusts to its blossoming lineup.
Grayscale’s CEO, Michael Sonnenshein, stated that the demand for cryptocurrencies has never been higher as they have reached an “inflection point.” He reiterated that Grayscale has always been at the frontier for creating opportunities around digital currencies.
The new trusts will be available for daily subscription by eligible individuals and institutional accredited investors. Grayscale has attempted to have the shares of the new products listed on the secondary market, but this is not a guarantee that it will be successful.
Since the announcement by Grayscale, the relatively obscure altcoins spiked incredibly, with Livepeer (LPT) gaining 100% to trade above $20 while Basic Attention climbed by 40% to trade at $1.20. Filecoin (FIL) and Chainlink (Link) increased by 35% and 10%, respectively.
On the Flipside
- Grayscale has halted new investment into Grayscale Bitcoin Trust (GBTC).
- Grayscale’s discount on the Bitcoin Trust has fallen to an all-time low, following stiff competition from emerging startups.
GBTC turned negative for the first time on February 23 and hit -11.92% on March 4, 2021.
- This growth in the discount on GBTC comes as Grayscale Investment gradually shifts focus to altcoins.
When Will Grayscale Add Other Coins?
Grayscale has become the world’s leading crypto assets manager because of its drive to make newer tokens available to its investors. In an interview, the company’s CEO said that “at any one time, we are probably maintaining a list of what could be 40 products that we are interested in bringing to the market.”
The CEO’s statement indicates that Grayscale is paying keen attention to a shortlist of potential coins. Before unveiling a new product to the public, Grayscale’s ethics require it to conduct a detailed investigation into the proposed product.
The firm’s modus operandi involves ticking the checklists of all regulatory agencies to avoid running afoul of any existing legislation. The new trusts are the first ones since 2019, from which we can glean that it takes an average of two years for Grayscale to push out new trusts to its clients.
We could also see trusts for Aave, Cosmos, Polkadot, Monero, and Cardano if the filings are given a green light by regulatory agencies. Grayscale Investments had previously filed for these trusts on January 27, 2021, at the Delaware Corporate Registry.
While the filings do not mean that trusts will be launched, it is often a strong indicator that the firm is making earnest preparations and carrying out due diligence on its part.
Flowing from the recent filings and the coins on Grayscale’s watch list, we might just see the unveiling of another series of trusts in the coming months.
