Grayscale Filing Hints at 5 More Potential Cryptocurrency Trusts

Jafrin  |  Jan 23, 2021

Grayscale Investments has incorporated five more cryptocurrency trusts, including Chainlink, Basic Attention Token, Decentraland, Livepeer, and Tezos tokens. Grayscale Investments is the world’s largest digital asset manager with more than $25 billion in its assets under management (AUM). Its bitcoin product includes the largest share of the total AUM at more than $21 billion.

Delaware Trust Company Filed for the 5 new Crypto Asset Trusts

On Dec. 18, 2020, Grayscale’s business partner Delaware Trust Company filed for five new crypto asset trusts with Delaware’s corporation’s registry. The trusts were formed by Delaware Trust Company, Grayscale's statutory trustee just in recent months.

However, the firm has not yet officially announced the new single-asset trust funds. The asset management firm has specified that it often makes reservation filings, which does not necessarily mean the specific products will be launched in the market.

Grayscale told the publication:

"Grayscale is always looking for opportunities to offer products that meet investor demands. 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 Holds a Fixed Amount of the Crypto Per Share

Usually, Grayscale ties up with a crypto custodian to hold a certain amount of cryptocurrency tied to that trust share. Investors can then either subscribe or purchase those shares on the open market. Meanwhile, the investors will earn rewards along with the growth of their holdings.

As the value of the underlying crypto rises, the price of the trust share also rises. For its legal compliant service, the asset manager charges a sizable premium in the range of 10% to as much as 200%. The above-mentioned crypto trust would work in a similar manner. Grayscale would hold a fixed amount of the potential cryptos per share and then accredited investors would be able to purchase it via regulated OTC brokers in the U.S.

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