Grayscale Makes a “Brilliant Move,” Now Allows to Use Tokens to Invest in its Shares


  • The new “in-kind creation works just like using cash to invest in the trust at NAV
  • Bitcoin Bull, Tom Lee says it’s a positive for price dynamics

Grayscale Investment has now introduced another way to invest in its different products, the company announced via email to its audience.

Now, users of Grayscale can contribute their existing tokens to the Grayscale trusts in exchange for shares of the trust.

Just like with cash, now investors can send tokens to invest in the trust at NAV.

Grayscale Investment offers digital currency investing and cryptocurrency asset management.

The company is the sponsor of Grayscale Bitcoin Trust (BTC), Grayscale Bitcoin Cash Trust (BCH), Grayscale Ethereum Trust (ETH), Grayscale Ethereum Classic Trust (ETC), Grayscale Horizen Trust (ZEN), Grayscale Litecoin Trust (LTC), Grayscale Stellar Lumens Trust (XLM), Grayscale XRP Trust (XRP) and Grayscale Zcash Trust (ZEC), and Grayscale Digital Large Cap Fund LLC.

This new “in-kind creation” means “investors are able to maintain their digital currency exposure through a titled, auditable security with a CUSIP, audited financials, and tax statements (in contrast to securing and storing tokens themselves).”

Investors, the company said have already taken advantage of this process.

Bitcoin bull and Fundtsrt’s Tom Lee says this is a “brilliant move” by the company.

This, he says is

“a very efficient way for someone with a large position in a digital asset like BTC to convert to fiat in a seamless way.”

Moreover, Grayscale investment trust also removes supply from the market in the process, which is

“a positive for price dynamics,”

Lee said.

Bitcoin price today went as high as $10,949 and is currently trading at $10,854 with 24 hours gains of 2.56 percent.

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