Grayscale’s New Crypto Trusts to Change the Fortune of the Currencies?

Meghna Das  |  Feb 1, 2021

The first month of 2021 is coming to an end, and Grayscale has made sure that their investments take a good spot in the crypto space. Grayscale, which is one of the leading crypto investors across the globe, has recently incorporated five more cryptocurrency trusts. These trusts include Chainlink, Basic Attention Token, Decentraland, Livepeer, and Tezos tokens. The investment giant filed these assets with Delaware's Corporations Registry

Delaware Trust Company is listed as Grayscale's "statutory trustee" for the U.S. state in Grayscale documentation.

The institution is also looking to enter the DeFi Space with trusts for Aave, Cosmos, Polkadot, and Monero. The firm filed documents for Cardano, as well. And with these most recent filings, we can expect that Grayscale is aiming to reap the benefits of the decentralized finance sector. Grayscale’s crypto trusts have become a popular way for investors to get exposure to cryptocurrencies. Therefore, we can expect that these trusts will also bring a revolution to the DeFi world. 

Will These Trusts Change the Fate of Those Cryptocurrencies for Better?

Even though the firm has not confirmed anything about the new single-asset trust funds, it has given a statement that says that it often makes “reservation fillings,” which always does not mean that it will launch a new product in the market. The statement said,

"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."

Earlier we have seen Grascale making huge investments in Bitcoin and Ethereum. And it is undeniable that these investments have a huge contribution to the prices of these cryptocurrencies reaching rocket high. Grayscale’s average weekly investment under the Ethereum Trust is $26.3 million. Therefore, from this past phenomenon, we can expect that soon the fate of the above-mentioned cryptocurrencies is going to change for the better. 

Moreover, cryptocurrencies like Chainlink and Basic Attention Token are among those that carry a lot of hopes of the traders in 2021. These cryptocurrencies have done quite well in 2020 and hence are expected to do even better, with investments pouring over them in the years to come. And if this news of Grayscale’s crypto trust becomes a reality then the crypto space is expected to boom even more. 

It is interesting to note that Chainlink has hit an all-time high as the price has surged by 15% on January 25th, 2021. This comes just after the news of Grayscale’s trust came out. Its price reached $25.45, which led to an increase in market capitalization to $10 billion. We can assume that this is just an example of how this trust brings benefits to those cryptocurrencies.

Chainlink Chart

Growing Investments of Grayscale in Cryptocurrencies

This is not the first time that Grayscale has made or hinted about making a major investment in the world of cryptocurrencies. Almost everyone is aware of Grayscale’s Bitcoin Trust. According to the 2020 Q4 report, its average weekly investment was $217 million. Grayscale is one of the institutions that hold large assets under cryptocurrencies. According to a tweet, the firm now has $27.5 billion in assets under management. The institution holds about 3% of the overall BTC in circulation. 

According to many reports, Grayscale Investments has raised more than $700 million in a single day. This is the largest one-day cryptocurrency asset gain in history. 

Grayscale has raised more than $700 million in a single day

Earlier, JPMorgan analysts led by Nikolaos Panigirtzoglou analyzed the reasons for Bitcoin’s massive price high and concluded that Grayscale Bitcoin Trust is one of the major reasons. Investors have put a lot of trust into it. Having said that, it will be safe to say that traders can expect the same for other cryptocurrencies. 

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