Grayscale Investments has revealed the cryptocurrencies that it is considering to create new investment products. The world’s largest digital currency investment group listed 23 tokens in total.
Blockchains such as Cardano, Polkadot, and EOS are among those tokens listed. Additionally, DeFi coins such as Aave, and Synthetix are on the list as well. As is yield farming platform Yearn Finance.
Grayscale CEO Michael Sonnenshein spoke on the company’s announcement. “The digital currency universe is constantly evolving and we seek to identify bold, interesting, and innovative opportunities that satisfy our investors’ demand for differentiated exposure to this burgeoning asset class.”
Sonnenshein added, “We may not turn each of these assets into one of our landmark investment products. But as a firm that has been on the vanguard of connecting the legacy financial system with the new, digital currency-driven financial system, we view it as our responsibility to introduce investors to more diversity in this space.”
The process of creating an investment product structured similarly to those Grayscale already offers requires significant review and consideration. It is also subject to substantial internal controls, sufficiently secure custody arrangements, and regulatory considerations. This is why it is no guarantee each of the digital assets will receive a corresponding investment product.
Grayscale Currently Has Eight Cryptocurrency Trusts
Grayscale currently has eight cryptocurrency trusts including Bitcoin, Litecoin, and Ethereum. These trusts enable investors to gain exposure to a variety of cryptocurrencies without having to own the assets directly.
Some have compared Grayscale’s role in the crypto market to Coinbase’s during its previous bull run. Coinbase was stringent with listing rules on its platform. As such, a new listing announcement raised hopes around additional retail volume in the token and reduction in regulatory risks.
Grayscale’s trusts are providing a very similar effect right now. But it’s on an institutional level since the product’s offerings are only available to accredited investors.