Leading digital asset manager Grayscale will launch five more cryptocurrency trusts, according to reports from the company’s founder Barry Silbert.
What Happened: “Digital currencies have reached an inflection point. Investor demand has never been higher, and every day we’re seeing new entrants to what has surely become a bona fide asset class,” commented Grayscale CEO Michael Sonnenshein in a press release.
The new trusts will offer investors exposure to five cryptocurrencies – Basic Attention Token ($BAT), Chainlink ($LINK), Decentraland ($MANA), Filecoin ($FIL), and Livepeer ($LPT).
The price of the tokens named in Grayscale’s new trusts rallied after the news, particularly $LPT which gained over 265% in the past 24-hours.
Why it matters: Grayscale Investments manages the Grayscale Bitcoin Trust (Btc) (OTCMKTS: GBTC) which is the largest Bitcoin investment vehicle in the space with more than $36.1 billion in assets under management.
At the time of writing, the trust holds over 655,000 units of Bitcoin accounting for over 3.5% of the digital asset’s total supply, making it the largest public holder of Bitcoin to date.
It has often been considered the investment vehicle of choice, particularly for institutions looking for exposure to the digital asset. According to reports, the largest holder of Grayscale Bitcoin Trust is the ARK Next Generation Internet ETF (NYSEARCA: ARKW) that owns over 8,531,330 shares valued at over $368 million.
Grayscale launching new trusts for these five cryptocurrencies grants an added layer of credibility to them, which may have been the cause for the positive price action seen in these tokens.
The Livepeer token ($LPT) price, in particular, was more positively impacted than the rest because of its relatively smaller market cap and community support. Livepeer ranks 217 in market cap and witnessed a 2036% increase in trading volume in the past 24hours.
The other tokens named by Grayscale all fall within the top 100 coins by market cap but still enjoyed some positive price action. $BAT rallied 33%, $FIL by 26%, $LINK by 8.8%, and $MANA by 28% following the news.
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