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Grayscale Incorporated All New Crypto Trusts

The digital asset manager currently filed paperwork for trusts in Aave, Cosmos, Polkadot, and several more.

Crypto investment giant Grayscale holds over $24B in assets through trusts for Bitcoin, Ethereum, and other major cryptocurrencies.

New filings proposed that it’s looking to extend the list: last Wednesday, Grayscale incorporated new trusts for Polkadot (DOT), Aave (AAVE), Monero (XMR), Cosmos (ATOM), EOSIO (EOS), and Cardano (ADA).

Delaware’s Division of Corporations said that all six of the entities were incorporated yesterday.

Grayscale’s trusts have been a famous way for investors to gain exposure to cryptocurrencies without directly trading them. They behave similarly to traditional ETFs, although they don’t pay out dividends, and there is a six-month lockup period for all the money one has invested in. The trusts’ premium also produced opportunities for appealing arbitrage plays.

Coinshares is a digital asset manager that offers the same investment vehicles for crypto in the US. And 3iQ and Ninepoint Partners have also launched crypto funds in Canada. However, there is still no actual Bitcoin ETF in the US, although not for lack of trying: the SEC had pushed back on applications from Gemini, Bitwise Asset Management, and VanEck.

The underlying assets for Grayscale’s newly incorporated trusts might each have their unique appeal for investors. Polkadot’s DOT token recently became the fourth-largest cryptocurrency by market capitalization; like Cardano (the sixth-largest), EOS (the 17th largest), and Cosmos (the 26th largest), it is a kind of decentralized computing network. Aave is a popular DeFi protocol that allows its users to borrow and lend crypto peer to peer, and Monero is a coin that is meant to maximize the privacy on the blockchain.

The latest trusts joined several other recent filings from Grayscale, consisting of the Grayscale Chainlink Trust (LINK), and also the funds for Decentraland (MANA), Tezos (XTZ), and the Brave browser’s Basic Attention Token (BAT).

In a series of statements last week, Grayscale CEO Michael Sonnenshein stated that these are all “reservation filings” – it isn’t yet known if the company will launch any of the trusts.

“Grayscale is always looking for opportunities to offer products that meet investor demands,” said Sonnenshein about the new trusts.

“Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market. Grayscale has and will continue to announce when new products are made available to investors.”

Grayscale is still the largest crypto investment company, with a consequential lead over its biggest competitor, CoinShares, which recently manages just over $2.9B in assets.

Grayscale now offers eight single-asset trusts and a diversified large-cap fund; the Grayscale Bitcoin Trust (GBTC) alone represents over $20B.

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