Crypto Trusts For Bitcoin Cash, Ethereum, Litecoin And XRP Launched By Grayscale Investments

Announcements, Investing | March 7, 2018 By:

Grayscale Investments is launching four new investment trust for ethereum, Litecoin, Ripple, and Bitcoin Cash.

Grayscale Investments, a wholly-owned subsidiary of Digital Currency Group, is a digital currency investing firm. As of February 28, 2018, Grayscale had $2.1 billion in assets under management. Prior to this launch, Grayscale Investments already manages three other trusts for bitcoin, Ethereum Classic, and Zcash.

The new products are among the first securities solely invested in BCH, ETH, LTC, and XRP, respectively. The investment objective of each trust is for the shares to reflect the value of the cryptocurrencies held by each trust, as determined by reference to the TradeBlock index for each digital asset at 4:00 p.m. New York time. The trusts do not currently operate a redemption program. As a result, the value of a share in a trust may not correspond to the value of a cryptocurrency being held by the trust.

“We are thrilled to expand Grayscale’s offerings to meet rising investor demand,” said Michael Sonnenshein, Managing Director at Grayscale. “Our team is committed to bridging the gap between the global investment community and the digital currency asset class. We remain focused on product creation and will continue to launch more single-asset and diversified products to provide exposure where investors are looking for it.”

Grayscale said only qualified investors can participate in the new funds’ private placements, and all of the private placement shares are subject to a one-year holding period. No assurances are given that after the one year holding period, there will be any market for the resale of shares, or, if there is such a market, as to the price at which such shares may be sold into such a market.

Last month, Grayscale Investments launched a new investment vehicle, the Grayscale Digital Large Cap Fund. The fund intends to hold the top cryoptocurrencies by market capitalization that meet the company’s fund construction criteria in a market capitalization-weighted portfolio. Each of the newly announced digital assets are already part of the Digital Large Cap Fund.