The leading digital currency asset manager, Grayscale Investments LLC, has revealed that it is considering various new digital assets offerings. In this way, Grayscale proceeds to seek ways to meet the growing investor demand for exposure to digital assets via secure, regulated, and familiar investment products. Grayscale lists 23 tokens as the firm notifies about the investigation of new investment products.
In today’s report, the firm introduced 23 of these cryptocurrencies, implying it would focus more on them. Seven of them are Ethereum-based DeFi governance tokens in Uniswap (UNI), Aave (AAVE), MakerDAO (MKR), Compound (COMP), Sushiswap (SUSHI), Synthetic Network (SNX), Yearn Finance (YFI). Grayscale also involved Ethereum’s competitor Cardano (ADA), Cosmos (ATOM), Polkadot (DOT), EOS, and Tezos (XTZ).
The firm’s list also comprises cryptocurrencies with a low market capitalization that ranks below 100 or less than $500 million in total market cap. It involves Reserve Rights (RSR), Numeraire (NMR), and Livepeer (LPT). The firm also presents one diversified fund that provides top cryptocurrencies exposure by market capitalization. Grayscale’s CEO, Michael Sonnenshein, contends that the digital currency sector is exceptionally dynamic, making it a valid reason to attempt new product offerings.
Grayscale to face competition with multiple competing products
Furthermore, Grayscale’s trusts help investors gain digital assets exposure via a more conventional investment vehicle by buying its publicly listed shares. Nevertheless, this year has observed the launch of various competing products. For instance, Bitcoin Exchange-Traded Funds (ETFs) are obtaining traction as new Grayscale contenders are rising. Last month, Osprey Funds LLC introduced an OTC Bitcoin Trust similar to Grayscale’s Bitcoin Trust (GBTC). Apart from that, ETFs appear to be taking off in Canada.
This month, Canada’s securities regulator, Ontario Securities Commission, approved the launch of Purpose Bitcoin ETF. It was offered by Purpose Investment Inc Toronto-based asset management firm. Evolve Funds Group Inc. also introduced its Bitcoin ETF that commenced trading on the Toronto Stock Exchange. The growing competition has affected Grayscale’s business. Precisely, competition may disintegrate the demand for the Grayscale Bitcoin Trust product. This could occur in a collapsing premium or even a discount. Recently, GBTC contains more than 655,750 Bitcoins worth $31.6 billion.
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