Grayscale, the world’s largest digital asset manager, recently announced the launch of three new trust funds that will allow institutional investors to gain exposure to cryptocurrencies. These funds will provide investors with a way to invest in some of the top cryptocurrencies without having to own and manage the assets themselves.
Grayscale has been operating its Bitcoin Investment Trust (GBTC) since 2013. Now, Grayscale is expanding its offering to include three additional trust funds that invest in lesser-known cryptocurrencies. These new funds are focused on Ethereum Classic, Litecoin, and Bitcoin Cash. These three cryptocurrencies are some of the most popular cryptocurrencies that offer different benefits to investors.
By creating these trust funds, Grayscale aims to provide investors with a structure that will allow them to invest in some of the most popular cryptocurrencies. The trust structure also provides investors with access to cryptocurrencies in a regulated manner. This will enable institutional investors to invest in cryptocurrencies without having to worry about issues like storage, security, or regulatory compliance.
Grayscale’s three new trust funds will be the first cryptocurrency investment products that will be traded on regulated exchanges. The funds will trade on OTCQX (GBTC), the top tier of the Over-The-Counter market, a trading platform that allows institutional investors to trade in a regulated environment. This provides a level of transparency and security to the investors that they would not otherwise have without the regulatory framework that Grayscale provides.
Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to register these new funds. This registration process can take up to several months, depending on how long it takes for the SEC to review and approve the filings. Once the SEC approves the filings, the new trust funds will become available to investors.
Grayscale’s Bitcoin Investment Trust (GBTC) already holds a significant portion of bitcoin. GBTC allows investors to own bitcoin indirectly, through a trust fund. The fund has become one of the most popular ways for institutional investors to gain exposure to bitcoin since its launch in 2013. Currently, GBTC holds over 400,000 bitcoin, worth over $13 billion at current prices.
Grayscale’s decision to expand its offering of trust funds shows how institutional investors are starting to see the value of cryptocurrencies. By creating a structure that allows investors to invest in cryptocurrencies without having to own and manage the assets themselves, Grayscale provides institutional investors with a way to gain exposure to this market in a regulated and secure manner.
The addition of Ethereum Classic, Litecoin, and Bitcoin Cash to Grayscale’s trust fund offerings provides investors with a way to diversify their cryptocurrency investments. These three cryptocurrencies offer different benefits to investors, with Ethereum Classic and Litecoin having faster processing times and lower fees than Bitcoin, while Bitcoin Cash offers lower fees and higher transaction speeds than Bitcoin.
In addition to the trust funds, Grayscale also manages several other cryptocurrency investment products designed for institutional investors. These products include the Grayscale Digital Large Cap Fund, which invests in the top five cryptocurrencies by market capitalization, and the Grayscale Digital Asset Fund, which provides exposure to a broad portfolio of digital assets.
The expansion of Grayscale’s product line to include Ethereum Classic, Litecoin, and Bitcoin Cash is a significant step for the cryptocurrency market. The move shows that institutional investors are starting to take cryptocurrencies more seriously and are willing to invest in this market through regulated and secure products like Grayscale’s trust funds.
The trust structure also provides a level of transparency and security to the investors that they would not otherwise have without the regulatory framework that Grayscale provides. This will enable institutional investors to invest in cryptocurrencies without having to worry about issues like storage, security, or regulatory compliance.
Overall, Grayscale’s expansion of its offerings to include Ethereum Classic, Litecoin, and Bitcoin Cash is a positive development for the cryptocurrency market. The move shows how institutional investors are starting to take cryptocurrencies more seriously and are willing to invest in this market in a regulated and secure manner. The launch of these three new trust funds will allow investors to gain exposure to some of the most popular cryptocurrencies and diversify their cryptocurrency investments.
One company that has recently made headlines in the cryptocurrency industry is Grayscale Investments. On May 9, the company announced the formation of a new entity called Grayscale Funds Trust and the filing of registration statements for three new exchange-traded funds (ETFs) related to cryptocurrency.
The Grayscale Funds Trust is a Delaware statutory trust structure that will allow Grayscale to manage its older products while pursuing ETFs. The three new ETFs that have been proposed include the Grayscale Ethereum Futures ETF, the Grayscale Privacy ETF, and the Grayscale Global Bitcoin Composite ETF.
The Grayscale Ethereum Futures ETF will derive value from exposure to Ethereum futures contracts. The Grayscale Privacy ETF will track the Indxx Privacy Index, which includes Grayscale’s Zcash Trust. The Grayscale Global Bitcoin Composite ETF will use exchange-traded products, investment vehicles, and securities from Bitcoin mining companies. It will not invest directly in digital assets.
Grayscale has emphasized that the three funds, although filed with regulatory applications, are not yet effective and cannot be bought or sold until they become effective.
Grayscale is well-known in the cryptocurrency industry for offering investment vehicles for institutions. The Grayscale Bitcoin Trust (GBTC) has a market cap of $10.84 billion, and the company offers numerous other cryptocurrency trusts. However, GBTC redemptions were halted in 2014 following conflicts with the U.S. Securities and Exchange Commission (SEC), and the trust has recently traded at a discount.
Grayscale has also been pursuing a spot ETF for Bitcoin, but it has not been successful in obtaining permission from the SEC to convert GBTC into a spot ETF. The company has gone to court over the matter, but no other firm has successfully launched a Bitcoin spot ETF to date.