Grayscale’s New BCH, ETH, LTC & XRP Crypto Investment Trust
The firm Grayscale Investments has made a public announcement in reference to the launch of four brand-new single asset investments based on cryptocurrency. The company has created trusts for Bitcoin Cash, Ether, Litecoin and Ripple. They’ve already been in successful management of three others, Bitcoin, Ethereum Classic and ZCash. Not to mention, they’ve also managed a successful recently launched large cap crypto fund.
The announcement was recently made and included the launch of the four new currency trusts for Ethereum, Litecoin, Bitcoin Cash and Ripple’s XRP. The firms managing director, Michael Sonnenshein was recently heard saying:
“We remain focused on product creation and will continue to launch more single-asset and diversified products to provide exposure where investors are looking for it.”
He recently also gave an interview to Bloomberg in which he reinforced his statement with:
“There will be more offerings coming from the Grayscale family this year.”
Later, he went on to add that there will be different focuses. Some would be primarily focused on single coins, and others would be able to hold several coins.
Grayscale was established in 2013 by Digital Currency Group. The Grayscale firm had more than $2.1 billion in assets, managed since the 28th of February. Before the recent announcement the company had already successfully been managing the three-other early mentioned cryptocurrency trusts. Again, those were a Bitcoin Investment Trust, an Ethereum Classic Investment Trust, and a ZCash Investment Trust.
More so, the firm also made a statement declaring the launch of a newly developed Digital Large Cap Fund. That new fund would include their new investment trusts as well for LTC, BTC, BCH, ETH, and XRP. Barry Silbert, CEO of the company remarked on it, saying:
“We’re excited to further expand the universe of Grayscale’s product offerings as interest in the digital currency asset class continues to grow.”
Each of the trusts has an objective to get it’s shares to reflect the value of the new cryptocurrency that it is currently holding. This will be determined by Tradeblock’s index, coinciding with each digital asset at the time of 4pm EST, minus a trusts liabilities and other expenses. This was directly explained by the company.
In accordance to the website of Grayscale and their four new trusts, each of them would include an annual fee of 2.5%. At the time of its creation the BCH trust had $6.26 million in assets being managed. The ETH trust was at $30.73 million, LTC’s was $495,519 and XRP’s was $490,487.
The trusts are all completely private placements and only trusted investors who are accredited can gain access to them. This is defined by Rule 501(a) of Regulation D to the U.S. Securities Act. Grayscale also added they currently are not running a redemption program of any kind. And even further went on to state that in accordance to Rule 144, under the same act:
“Each trust’s shares are subject to a one-year holding period before they can be resold without restriction.”