Bitpush launches five new digital currency trusts, bringing the total to 14

Summary: According to Grayscale’s official statement, it officially launched five new digital currency investment trust funds today, bringing the total number of its investment products to 14. The new trust products are: Grayscale® Basic Attention Token (BAT) Trust, Grayscale® ChainLink Trust, Grayscale® Decentraland Trust, Grayscale® Filecoin Trust and Grayscale® Livepeer Trust. Grayscale CEO...

According to Grayscale’s official statement, it officially launched five new digital currency investment trust funds today, bringing the total number of its investment products to 14. The new trust products are: Grayscale® Basic Attention Token (BAT) Trust, Grayscale® ChainLink Trust, Grayscale® Decentraland Trust, Grayscale® Filecoin Trust and Grayscale® Livepeer Trust.

Michael Sonnenshein, CEO of Grayscale, said: “Digital currencies have reached an inflection point. Investor demand has never been higher, and with new entrants every day, digital currencies are sure to become a true asset class.” He added, “Grayscale has been a leader in creating new ways for investors to gain exposure to digital currency opportunities, and this announcement continues that tradition. We look forward to working with our global investors, our growing team, and regulators to continue to move the industry forward.”

The new trust is now open for daily subscription to compliant individual and institutional accredited investors.

These new trusts function in the same way as Grayscale’s other single-asset investment trusts. Each trust is one of the first investment products to invest solely in the digital currencies underlying Basic Attention Token (BAT), Chainlink (LINK), Decentraland (MANA), Filecoin (FIL), and Livepeer (LPT).

Grayscale's other single-asset investment products provide access to Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM) and Zcash (ZEC). In addition, Grayscale's diversified investment product Grayscale® Digital Large Cap Fund provides the opportunity to invest in high-market-cap digital currencies.

Grayscale's investment products are open to institutional and accredited individual investors, who can purchase regular and ongoing private placements.

Certain Grayscale products are publicly traded on OTC markets, such as OTCQX®1. Shares of these products are not restricted by Grayscale under SEC laws and regulations and can be bought and sold throughout the day through any brokerage account. These products include: Grayscale® Bitcoin Trust (OTCQX: GBTC), Grayscale® Bitcoin Cash Trust (OTCQX: BCHG), Grayscale® Ethereum Trust (OTCQX: ETHE), Grayscale® Ethereum Classic Trust (OTCQX: ETCG), Grayscale® Litecoin Trust (OTCQX: LTCN), Grayscale® Digital Large Cap Fund (OTCQX: GDLC)

Like these products, Grayscale plans to launch new products on secondary markets. However, there is no guarantee. Although shares of certain products have been approved for trading on secondary markets, investors in new products should not assume that new products will also be approved.

Due to various factors beyond Grayscale's control, such as the SEC, FINRA or other regulatory agencies, investors in new products should be prepared for the risk of holding shares indefinitely.

According to Bitpush's previous report, Grayscale's statutory trustee in the United States, Delaware Trust Company, completed the registration of five digital asset trusts, Chainlink, Basic Attention Token, Decentraland, Livepeer and Tezos, on December 18, 2020. Soon after, the company also submitted an application for Cardano. Aave, Cosmos and Polkadot, as well as privacy coins Monero and public chain EOS were registered on January 28. Uni Trust was registered on January 28, THETA Trust was registered on February 1, and Yearn.Finance (YFI) Trust was registered on February 10. Five digital asset trusts, SNX (Synthetix), SUSHI (Sushiswap), STX (Blockstack), COMP (Compound) and MKR (MakerDAO), were registered on February 11. On March 3, Grayscale registered four trust fund products: Numeraire TRUST (NMR), Reserve (RSR), Graph (GRT), and Flow (FLOW). However, Grayscale CEO once said that registering a trust does not mean that the corresponding product will be launched, but it is only a strategic layout.

Image source: Grayscale

By Sara Zhang