Grayscale Launches Crypto Investment Trust For Stellar Lumens

Announcements, Blockchain, Investing, News | January 18, 2019 By:

Asset manager Grayscale Investments has launched a new single currency investment vehicle centered around Stellar Lumens (XLM).

Established in 2013, Grayscale is a wholly-owned subsidiary of Digital Currency Group. It provides secure access to the digital currency asset class through its publicly-quoted digital currency investment vehicles, including Bitcoin Investment Trust (GBTC) and Ethereum Classic Investment Trust (ETCG).

Called Grayscale Stellar Lumens Trust, the new fund is the ninth single-asset investment vehicle introduced by the company. Like the firm’s other single currency products, it is structured as a Delaware Grantor Trust and will solely and passively hold Stellar Lumens. It will enable investors to gain exposure to the price movement of XLM through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping the cryptocurrency.

Stellar is a distributed and open-source blockchain platform that connects diverse financial systems and facilitates cross-asset transfers of value around the world. XLM, the platform’s native currency, is currently the sixth most valuable cryptocurrency in terms of market capitalization.

Michael Sonnenshein, managing director of Grayscale, said that they created Grayscale Stellar Lumens Trust in response to investor demand. He added that the new product is a part of Grayscale’s push to offer investors exposure to “established blockchain projects with substantial traction and resources.”