Grayscale Incorporates Six More Cryptocurrency Trusts

Jafrin  |  Jan 29, 2021

The world’s largest digital asset manager Grayscale Investments has incorporated six new trusts for cryptocurrency assets such as Polkadot (DOT), Aave (AAVE), Monero (XMR), Cosmos (ATOM), EOSIO (EOS), and Cardano (ADA). The investment firm recently incorporated trusts for Chainlink (LINK), Basic Attention Token (BAT), and Tezos (XTZ). The registrations were made on Jan. 27 by Delaware Trust Company, Grayscale's statutory trustee for the U.S. state.

Grayscale is the Largest Crypto Asset Manager in the World

Grayscale currently offers eight single-asset trusts, as well as a diversified large-cap fund. It is also the largest crypto asset manager in the world. It manages more than $24 billion worth of assets Bitcoin, Ethereum, and other major cryptocurrencies. However, its bitcoin trust includes the largest share of the total AUM at more than $20 billion.

Meanwhile, the filings do not symbolize that the trusts will necessarily be launched for the new digital assets. Although, it does indicate that Grayscale is looking forward to the potential launches.

In recent months, the company said at the new filings:

"Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market."

Grayscale’s trusts are a popular way for investors to get exposure to cryptocurrencies without the hassles of directly holding the coins. The crypto trusts operate like traditional ETFs. Although, they don’t pay out the dividends. There is also a six-month lockup period for all the amount put into.

Grayscale's Each Incorporated Trusts Unique

The underlying assets for Grayscale's newly incorporated trusts each have their own uniqueness. For instance, Polkadot’s DOT token became the fourth-largest cryptocurrency by market capitalization. Cardano (ADA) became the sixth-largest while EOS the 17th largest and Cosmos (ATOM) the 26th largest.

Meanwhile, Aave (AAVE) is a popular DeFi protocol that enables users to borrow and lend crypto peer to peer. Monero (XMR)  is a leading privacy cryptocurrency on the market.

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