The world’s largest crypto fund manager is offering new trusts that invest in 5 different cryptocurrencies
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Grayscale Investments is offering new trusts that invest in five different cryptocurrencies.
The new trusts will invest in Basic Attention and Decentraland tokens, Chainlink, Filecoin, and Livepeer.
Investor demand for digital currencies has never been higher, Grayscale CEO Michael Sonnenshein said.
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Digital currency asset manager Grayscale Investments announced Wednesday that it is offering five new investment trusts, bringing its single-asset lineup to 13.
The new trusts are launching into fairly niche segments of the crypto space, with three investing in Chainlink, Filecoin, and Livepeer, which are blockchain-based digital payment systems. One will invest in Ethereum-based Basic Attention tokens, while the fifth will hold coins in the virtual reality platform Decentraland. These trusts are among the first of their kind to solely invest in the digital currencies underlying each investment product.
“Digital currencies have reached an inflection point,” Grayscale CEO Michael Sonnenshein said in a statement. “Investor demand has never been higher, and every day we’re seeing new entrants to what has surely become a bona fide asset class.”
Decentraland is an Ethereum-based blockchain platform where users can operate VR applications. Decentraland
Grayscale said all five trusts are open for subscription by eligible individual and institutional accredited investors. The decision to launch them was based on assessment of investor demand and the integrity of each cryptocurrency, Sonnenshein told Bloomberg in an interview. The asset manager’s biggest product is still its $34 billion Grayscale Bitcoin Trust.
The new cryptocurrencies it has chosen have much smaller market values in comparison to bitcoin. Basic Attention tokens are known to track consumers' time and attention on websites, with the goal of understanding how to efficiently distribute advertising money.
Chainlink runs on the Ethereum blockchain, with a technology that enables delivery of price feeds into decentralized finance applications. Filecoin is a storage service provider that enables anyone to rent spare storage space on their computer, creating a huge source of data storage.
Livepeer is a decentralized video-streaming network for those who wish to add live or in-demand video to their networks. Meanwhile, Decentraland tokens can be used to buy up virtual plots of land and goods and services within its virtual-reality space.
Grayscale said it plans to continue a tradition of creating “novel pathways” for investors to access the opportunities that digital currencies may offer.
Largest Bitcoin Fund Manager Grayscale Launches Five More Crypto Trusts, $LPT Rallies 265% After News
Leading digital asset manager Grayscale will launch five more cryptocurrency trusts, according to reports from the company’s founder Barry Silbert.
What Happened: “Digital currencies have reached an inflection point. Investor demand has never been higher, and every day we’re seeing new entrants to what has surely become a bona fide asset class,” commented Grayscale CEO Michael Sonnenshein in a press release.
The new trusts will offer investors exposure to five cryptocurrencies – Basic Attention Token ($BAT), Chainlink ($LINK), Decentraland ($MANA), Filecoin ($FIL), and Livepeer ($LPT).
The price of the tokens named in Grayscale’s new trusts rallied after the news, particularly $LPT which gained over 265% in the past 24-hours.
Why it matters: Grayscale Investments manages the Grayscale Bitcoin Trust (Btc) (OTCMKTS: GBTC) which is the largest Bitcoin investment vehicle in the space with more than $36.1 billion in assets under management.
At the time of writing, the trust holds over 655,000 units of Bitcoin accounting for over 3.5% of the digital asset’s total supply, making it the largest public holder of Bitcoin to date.
It has often been considered the investment vehicle of choice, particularly for institutions looking for exposure to the digital asset. According to reports, the largest holder of Grayscale Bitcoin Trust is the ARK Next Generation Internet ETF (NYSEARCA: ARKW) that owns over 8,531,330 shares valued at over $368 million.
Grayscale launching new trusts for these five cryptocurrencies grants an added layer of credibility to them, which may have been the cause for the positive price action seen in these tokens.
The Livepeer token ($LPT) price, in particular, was more positively impacted than the rest because of its relatively smaller market cap and community support. Livepeer ranks 217 in market cap and witnessed a 2036% increase in trading volume in the past 24hours.
The other tokens named by Grayscale all fall within the top 100 coins by market cap but still enjoyed some positive price action. $BAT rallied 33%, $FIL by 26%, $LINK by 8.8%, and $MANA by 28% following the news.
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Grayscale Launches 5 New Crypto Investment Products as Investor Demand for Cryptocurrencies Soars – Finance Bitcoin News
Grayscale Launches 5 New Crypto Investment Products as Investor Demand for Cryptocurrencies Soars
Grayscale Investments has launched five new cryptocurrency investment products, which are now available for subscription by eligible individual and institutional accredited investors. The company now offers a total of 14 crypto investment products.
The new products are the Basic Attention Token (BAT) Trust, the Chainlink (LINK) Trust, the Decentraland (MANA) Trust, the Filecoin (FIL) Trust, and the Livepeer (LPT) Trust. They function the same as Grayscale’s other single-asset investment trusts, the company announced Wednesday.
Grayscale’s other single-asset investment products provide exposure to bitcoin, bitcoin cash, ethereum, ethereum classic, horizen, litecoin, stellar lumens, and zcash. The company also offers the Digital Large Cap Fund, which provides exposure to the top cryptocurrencies by market capitalization.
As of March 16, Grayscale Investments has $42.9 billion in net assets under management (AUM) across all of its products.
Some Grayscale products are publicly-traded on OTC markets, including OTCQX. They include the Bitcoin Trust (GBTC), Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic Trust, Litecoin Trust, and the Digital Large Cap Fund.
Grayscale CEO Michael Sonnenshein commented:
Digital currencies have reached an inflection point. Investor demand has never been higher, and every day we’re seeing new entrants to what has surely become a bona fide asset class.
What do you think about Grayscale’s new crypto investment products? Let us know in the comments section below.
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