Grayscale launches Four ways of getting exposure to Bitcoin and other Cryptocurrencies
March 13, 2018 12:12 pm
Michael Sonnenshein launches four new ways of gaining exposure to bitcoin and other cryptocurrencies.
Crypto investor reveals that investing in cryptocurrencies is complicated, but new trusts could make it more accessible.
He said to CNBC:
“Cryptocurrencies are not like stocks and bonds and all the other things that you buy; there’s certain technological prowess that people need to have to handle them, store them securely.”
Realizing that investors need exposure to digital currencies, Grayscale launched four new crypto funds: Bitcoin Cash Investment Trust, Ethereum Investment Trust, Litecoin Investment Trust and XRP Investment Trust.
Grayscale has invented the famous Bitcoin Investment Trust (GBTC), which is a way of investing in and trading the price moves of bitcoin even without directly investing in the cryptocurrency.
“The new trusts are something that people can wrap their heads around.”
Sonnenshein told since the products were introduced, the demand has been fantastic. The company also has approximately $2.1 billion in assets under the management of eight various products.
“There’s a lot of investors who want to be able to place targeted exposure in a fund, and there are also investors who want that more-diversified exposure, like the digital large-cap fund offers. We’re continuing to break records all the time.”
He stated that each fund works as a trust on a rules-based methodology, where tokens are estimated each quarter to see if they have fallen into the 70 percent target of the overall market cap in the cryptocurrencies.
“Of course there are other qualifiers and disqualifiers: There’s got to be a liquid market. We have to have a custodial solution that we feel is secure and robust and allows us to continue to support the product operationally.”
Sonnenshein noted the Grayscale plans for rolling out more new products later this year. He mentioned that each fund would be having one-year of holding period before it can be resold without any restrictions. The only U.S. qualified certified investors utilize money into funds.