Grayscale Launches Four Additional Cryptocurrency Trusts (ETH, XRP, LTC, BCH)
Grayscale Investments Inc. has revealed that it will be adding four new cryptocurrency trusts to its investment portfolio. This announcement was made on, March 6, 2018, and it effectively increases the firm’s cryptocurrency trust portfolio to seven different cryptocurrencies and one diversified portfolio. Grayscale is a subsidiary of the Digital Currency Group (DCG) owned by crypto investment pioneer, Barry Silbert. The firm began its journey into the world of investing in crypto assets in 2013 with the launch of the Bitcoin Investment Trust. Afterward, the company added Ethereum Classic and Zcash to the portfolios. With this new addition of four more cryptocurrencies, the portfolio has more than doubled.
The New Entrants
The four new cryptocurrencies that have been added to the Grayscale portfolio are Bitcoin Cash, Ripple, Litecoin, and Ethereum. Speaking on the development, Michael Sonnenshein, the managing director of the firm, said that these additional cryptocurrencies are part of Grayscale’s plans to expand its services. He declared that the company wishes to continue in its bid of providing more single-crypto and diversified crypto portfolio investment options. Sonnenshein also spoke about the rate at which the company is moving forward calling it a “meaningful milestone.” In 2017, the firm only had the one investment offering, but now the company can boast of eight different offerings.
With these new entrants, qualified and accredited investors will have the option of putting up equity into Bitcoin Cash, Ripple, Litecoin, and Ethereum. In a statement released by the investment firm, it was revealed that each cryptocurrency would be operated as a trust. Shares owned by qualified and accredited investors will be locked down for a one-year period. After the temporary hold, the shares can then be resold without any restrictions whatsoever.
A Wider Reach
While the cryptocurrency market is a global market, some preferences are unique to some particular regions and demographics. According to Sonnenshein, some of the newly added cryptocurrencies could help to bolster the firm’s pedigree in different parts of the world. He further went on to say that such a situation helps to widen the reach of Grayscale all over the world. He used Ripple as an example stating that the XRP cryptocurrency is quite popular in Japan. In fact, Asia is perhaps the most significant market for XRP as Japanese and South Korean exchanges account for the majority of global Ripple trade transactions.
The Grayscale Portfolio
The total size of the portfolio managed by Grayscale is valued at about $2.1 billion. Apart from these discrete cryptocurrency funds, there is also another pooled investment vehicle that provides access to these cryptocurrencies. This pooled investment vehicle is called the Digital Large Cap Fund, and it is a favorite of institutional traders and well as passive investors who do not fancy the rigors of day trading in the cryptocurrency market. Grayscale was one of three bitcoin ETFs that applied for approval to SEC. The other two were the SolidX bitcoin trust and the Winklevoss ETF.