Grayscale Launches New Investment Trusts With Exposure To Bitcoin Layer 2 Projects

by

As a seasoned crypto investor with a deep understanding of the market, I’m excited about Grayscale’s latest offerings that provide accredited investors access to Bitcoin layer-2 networks like Stacks and NEAR Protocol. This move demonstrates Grayscale’s dedication to meeting investor demand for diversified crypto asset exposure.

Expert: Two fresh investment opportunities have been presented by Grayscale for accredited investors, granting access to Bitcoin‘s advanced layer-2 networks, specifically Stacks and NEAR Protocol. These new additions expand Grayscale’s extensive collection of crypto-centric investment vehicles. Among the existing options are funds tailored to Solana (SOL) and Chainlink (LINK), among others.

Grayscale Offers Exposure To Bitcoin Layer 2 Projects

Rayhaneh Sharif-Askary, the Head of Product and Research at Grayscale, underscored their dedication to catering to investor interest in diversified cryptocurrency investments. “In response to persistent demand for exposure to a varied range of crypto assets, Grayscale remains resolute in introducing new products that allow investors to tap into the burgeoning and dynamic facets of the crypto market,” she stated, based on Decrypt’s report.

Bitcoins secondary layer network, Stacks, introduces smart contract capabilities to Bitcoin. It also supports the creation of decentralized financial applications on the Bitcoin platform. Notably, Stacks has seen growing interest lately due to the increasing hype around Bitcoin’s Ordinals and Runes protocols, with significant attention drawn after the recent release of its Nakamoto upgrade.

As an analyst, I’ve noticed an intriguing trend within the Stacks ecosystem. Kyle Ellicott, their Investor Relations Lead, has brought attention to this development, emphasizing the surge of institutional interest we’re observing. She put it eloquently by saying, “In our Stacks community, we’re experiencing a substantial influx of demand from institutions. The broader Bitcoin landscape is witnessing a comparable trend as the divide narrows regarding the release of Bitcoin’s liquidity and making it more adaptable for institutional use.”

As a blockchain analyst, I’d describe it this way: In the year 2020, NEAR Protocol emerged as a high-speed blockchain with a distinct focus on decentralized cloud computing. More recently, the team behind this innovative project made an exciting announcement – the creation of a new research and development lab dedicated to artificial intelligence (AI).

As a researcher studying Grayscale’s investment strategies, I’ve discovered that they refer to their private placements as the foundational phase in the development of their financial products. Their long-term objective is to transform these private placements into Exchange-Traded Funds (ETFs) for public trading.

At present, the Grayscale Bitcoin Trust (GBTC) holds the distinction of being the only product granted Exchange-Traded Fund (ETF) status by regulatory bodies, having received approval in January. Additionally, Grayscale is working to obtain Securities and Exchange Commission (SEC) authorization to transform its Ethereum Trust into an ETF as well.

Amendments To Ethereum ETF Application

On Wednesday, May 22nd, Grayscale made an amended filing for its Ethereum ETF proposal with the Securities and Exchange Commission (SEC). This update was disclosed by Bloomberg Senior ETF Analyst James Seyffart on X, having earlier amended the application on May 21st.

The cryptocurrency world is on the edge of its seat as it waits for the Securities and Exchange Commission (SEC) in the US to give the green light to Spot Ethereum ETF applications today. This shift in the SEC’s stance could mark a significant milestone if these applications are indeed approved. Grayscale, meanwhile, is taking great care to avoid any mistakes in its application process.

In their revised application for an Ethereum ETF, Grayscale has eliminated the “staking” provision. This action signifies Grayscale’s attentiveness to the SEC’s regulations as the securities agency reportedly intends to take into account the relationship between Ethereum and staked Ethereum.

The significance of the 19b-4 form cannot be overstated since it marks the initial approval by the SEC in the sequence toward the eventual product launch. Moreover, the consistent revisions to the filing could indicate an active dialogue between the SEC and the ETF applicants, with adjustments being made based on the regulatory body’s guidance.

Read More

2024-05-23 17:11