Grayscale Incorporates 6 more Crypto Trusts, including LINK, BAT, and XTZ among others...

in LeoFinancelast month

The Grayscale Effect may soon start impacting more Altcoins...

We've all seen what Grayscale has done for bitcoin, namely remove tons of supply from exchanges and make it that much easier for the price to go up when demand comes in.

Well, that same phenomenon may soon start impact some select altcoins.

In a filing with the Delaware Trust Company, Grayscale created 6 additional crypto trusts, which can be seen below:



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If you are curious why LINK, BAT, and XTZ have been performing so well recently, this is why.

Keep in mind that just because Grayscale incorporates the trust, it doesn't necessarily mean they will bring it to market.

In fact, the CEO said exactly that when questioned about the recent altcoin trusts that have been incorporated.

"Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market." - Michael Sonnenshein CEO


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Grayscale's AUM continues to swell...

Grayscale now has over $25 billion assets under management as they continue to add bitcoin to their trust at a blistering pace.

In the last 24 hours, Grayscale added 3,544 bitcoin which is worth roughly $118 million at current prices.

Over the past 7 days, Grayscale has added 29,598 bitcoin, which is worth close to $1 billion dollars.



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The pace of inflows is more interesting than usual considering that the GBTC bitcoin trust is getting closer and closer to trading with no premium.

On last check, the trust was trading with roughly a 5% premium.

That's a long ways from it's 30% historical average.

As it stands right now, Grayscale has the Midas touch and any altcoin they touch is likely to turn to gold over the coming months.

Would be great if we could get them to touch HIVE or LEO!

Stay informed my friends.


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They are like a great big crypto vacuum. Sucking up everything in their path!

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Ha, yes they are. I like that.

And then what? Will we fork them out like Sunny boy?

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Ha! That wouldn't be so funny if it weren't so true... Though this would be significantly different. The great thing about these trusts are that they have to buy up the coin to back the shares of the trust, thus putting real demand on the underlying instead of simply creating a derivative product.

Nice I own all 3 of those hopefully my bags get pumped

XTZ have been performing so well recently, this is why.

I have.., and having some XTZ I was thinking about offloading it.

Might be a good move. Though if Grayscale does end up bringing an XTZ trust to market, there will probably be a ton of demand for the coin at some point, especially if the shares trade at a premium in the secondary market like they do with GBTC.

very important news ... that's why BAT is worth enough now

Great news for the industry and for investors! I think it speaks volumes for the coins they incorporated trusts for, they believe there is potential there. Some will work out while some wont but I think we can take this as a sign that these select alts have a potentially higher ceiling.

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Yep, though keep in mind that just because they created the trust doesn't necessarily mean they will bring it to market.

The only thing I don't like about this is the centralization of a decentralized asset, thereby slowly creating a central failure point.

That would be due to their no redemption rule.

On the other hand, maybe it wouldn't be all that bad for everyone else - a worst case Grayscale failure would be the equivalent to a giant burn, and "privately" held coins would skyrocket!

Wow! Grayscale is acting like a Lion! They are bringing crypto to IRA, 401k and Roth IRA retirement accounts. This is a huge buying niche!

I see only further buying pressure on Bitcoin with periodic profit taking! Amazing!

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