Grayscale Investments has revealed that it is unveiling five new virtual asset trusts. With these five extra trusts, Grayscale now has fourteen digital assets that they manage for clients. Three of these new investment trusts will consist of individual virtual currencies such as Livepeer, Filecoin and Chainlink. The fourth which will be built on Ethereum will contain a basic attention token, while the last one will be VR-related coins called Decentraland.
First Grayscale Products Since 2019
Before these new trusts, Grayscale’s most recent products were released in 2019 and the main reason the world’s leading virtual currency manager is introducing these new products is to provide potential crypto investors with alternative crypto investment options. New crypto investors can enter these smaller markets since their entry point are attractive.
Micheal Sonnenshein, Grayscale CEO opined that “virtual currencies are now at a turning point. Yet, investor’s request isn’t abating and there are new entrants into the market every day. So, we can classify this space as a genuine asset class.”
Basic attention tokens track users’ time and attention on virtual properties which makes it easier to allot advertising revenue. Ethereum-built Chainlink offers price feeds to several Defi apps. As a data storage protocol, users can pay to use Filecoin and store their digital assets. Also, Livepeer functions as a decentralised network for content delivery. Lastly, Decentraland trust will have mana tokens that players can use to purchase digital land plots on Decentraland.
Grayscale decided to focus on these crypto products after a thorough analysis of the market’s needs. Part of the analysis involved scrutinizing the authenticity of the basic protocols and evaluating the needs of potential investors, as stated by Sonnenshein. In an interview with Bloomberg Sonnenshein was quoted saying, “there was a time we had at least 30 products or even 40 that we wanted to introduce into the market.” he clarified saying “our goal was to find a balance between opportunities in the virtual currency space and the demand from interested investors.”
Grayscale’s Other Single-Asset Investment Products
Grayscale’s business model was to help investors trade the crypto market without buying any specific crypto asset. Other investment assets from Grayscale are trusts for Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Horizen (ZEN), Ethereum Classic (ETC), Zcash (ZEC), and Stellar Lumens (XLM). Unfortunately, not all their products can be bought at the over-the-counter (OTC) market. Grayscale explained that they made it that way to avoid SEC, FNRA and other regulators questioning their products.
Grayscale remarked that they offer periodic private placements for accredited investors to access their investment products. Recall that last month, Grayscale Investments registered Yearn Finance as an addition to their cryptocurrency trust. This new entity is built on the Defi protocol. The asset management giants continue to purchase more crypto assets even though its trust size is already massive at the moment. Bill Miller, a popular hedge fund manager, recently disclosed that his flagship fund will soon receive at least 14% exposure to bitcoin due to their investment in Grayscale bitcoin trust.
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