Bitcoin Investment Trust Creator Launches Four New Crypto Funds
Grayscale Investments, the company behind the Bitcoin Investment Trust (OTC: GBTC), announced Tuesday that it had opened four new investment products that provide investors with exposure to cryptocurrencies in a more familiar wrapper.
The new funds — the Ethereum Investment Trust, Ripple Investment Trust, Bitcoin Cash Investment Trust, and Litecoin Investment Trust — will each hold positions in a single cryptocurrency.
«We are thrilled to enlarge Grayscale's offerings to meet rising investor demand,» said Michael Sonnenshein, Grayscale's managing director, in a media release. «Our team is committed to bridging the gap between the global investment community and the electronic currency asset class. We stay focused on product creation and will continue to launch more single-asset and diversified products to provide exposure where investors are searching for it.»
Like Grayscale's other products, these new trusts will be offered in a private placement to accredited investors that purchase a minimum of $10,000 worth of stocks and submit to a one-year predetermined period.
At some point, the trust sponsor will likely seek to list these shares on publicly-quoted over-the-counter (OTC) platforms, as it already has with the Bitcoin Investment Trust. Once shares are publicly-quoted, they have more liquidity and may also be bought via retail brokerage accounts — although often at a steep premium over the value of their underlying assets.
Though anathema to a lot of financial analysts, due to the heavy premium on the secondary market, the Bitcoin Investment Trust has been demonstrated to be quite popular among both buyers that are nervous to hold cryptoassets directly and investors who desire to gain exposure to Bitcoin through tax-advantaged retirement accounts.
Ahead of GBTC's recent stock split — a move that made the trust even more appealing to retail investors — the trust was one of the most-purchased assets on investing program Stockpile, which enables investors to buy fractional shares of expensive stocks.
Grayscale Trust Lineup Swells to Eight
Altogether, Grayscale offers eight different cryptocurrency investment products, including Zcash Investment Trust and the Ethereum Classic Investment Trust.
Last month, Grayscale launched the «Digital Large Cap Fund,» a cryptocurrency index fund that holds market cap-weighted positions in the five largest cryptocurrencies. Each one of these cryptocurrencies is now available in standalone funds, meaning that — after they are publicly-quoted — investors could invest in the large cap fund but short any of the individual assets where they were bearish.
Apart from GBTC these products are available exclusively through private placement.