Grayscale Plans to Add DeFi Tokens to Expand its Investments

News / 19.06.2021

Grayscale has announced that it is possibly venturing into 13 cryptocurrencies. Some of the cryptocurrencies are Curve, Polygon, Ren, Solana, Ox, among others.

In February, Grayscale announced that it was looking into 23 offerings. The list featured DeFi tokens like Polkadot, Aave, and MakerDAO.

Grayscale Venturing More into DeFi

Worldwide, Grayscale has emerged as the top digital asset manager that has over $34 billion in assets as of last week. In addition, the company administers trust funds and offers shares that allow accredited investors to be exposed to different independent cryptocurrencies.

Grayscale stated in its latest release that it had updated its asset list in its transparency commitment. However, Grayscale further noted that attributed to internal controls, custody arrangements, and restrictions, not all of the assets it considers stand as investment products.

Grayscale shows that the company is ready to meet the increased demand of investors in sectors such as DeFi and highly scalable blockchains. It, however, emphasizes that not each asset it has an interest in faces investment plans after confirmation. Such has been true even for the previously considered assets, such as Tezos, Eos, and Cardano.

For the investment products of one asset, the company presently offers 13 cryptocurrencies, several of which are directly invested by its parent company, Digital Currency Group.

These include single asset trust funds in Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Horizen, Basic Attention Token, Chainlink, Decentral, Filecoin, Livepeer, Stellar Lumens, and ZCash. It also offers the Grayscale Large Cap Trust, a diversified investment.

Grayscale Has Been Growing

Five new trusts for Basic Attention Token, Chainlink, Decentrand, Filecoin, and Livepeer were launched on March 17 by Grayscale. The five trusts now account for roughly 0.1% of the 34.4 billion dollars in managed assets of Grayscale (AUM).

According to CoinShares, 75% of the assets under management in institutional crypto-investment products in Grayscale’s trusts represent a total of 44.3 billion dollars.

Seventy-three percent of the total AUM of Grayscale is in the Grayscale Bitcoin trust, and more than 56 percent of the combined assets are managed in crypto investment products broadly.

This year, too, the company’s Ethereum Trust has experienced growth, accounting for around 22% of managed capital. In addition, almost 5% of the AUM combined in the company comprises all other trusts administered by Grayscale.

Since 2021, more than $2.3 billion in the trusts for Basic Attention Token, Chainlink, Decentraland, Filecoin, and Livepeer have been invested in Grayscale. The five trusts now account for roughly 0.1% of the 34.4 billion dollars in managed assets of Grayscale (AUM).

A complex, multifaceted procedure can briefly explain the process of generating an investment product that is similar to those offered. However, it needs considerable review, thought, strong internal controls, safe custody, and regulatory considerations.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.