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Grayscale registers new fund for real! Besides the top five listed, what are the other candidate cryptocurrencies?

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Grayscale registers new fund for real! Besides the top five listed, what are the other candidate cryptocurrencies?

Since December 2020, Grayscale has deviated from its usual practice and registered a large number of new funds with the Delaware government. According to Grayscale CEO Michael Sonnenshein, these actions are just "being prepared without necessarily using them." Investigations have shown that the act of registration does not necessarily lead to an increase in coin prices.

However, on the evening of the 17th, Grayscale did announce the listing of five new funds, bringing the total number of funds to 14, with assets under management reaching $43.6 billion. This will take you back to review the performance of these currencies after being selected, as well as which other candidate cryptocurrencies are still on the list.

Announces Five New Funds: BAT/LINK/MANA/FIL/LPT

Grayscale Investments' launch of new funds is no different from before. CEO Michael Sonnenshein stated, "Digital currencies have reached a turning point, and we see new people entering the market every day, believing it will become a real asset class. Grayscale will provide more diverse investment channels to investors." These new funds all focus on single digital assets:

  • Grayscale® Basic Attention Token Trust
  • Grayscale® Chainlink Trust
  • Grayscale® Decentraland Trust
  • Grayscale® Filecoin Trust
  • Grayscale® Livepeer Trust

Impact on Coin Prices?

How have these cryptocurrencies performed in the last 24 hours?

  • Internet Advertising: Basic Attention Token BAT: 21.3% $1.24
  • Oracle: Chainlink LINK: 6.9% $30.20
  • NFT/Virtual Gaming: Decentraland MANA: 21.4% $1.03
  • Cloud Storage Concept: Filecoin FIL: 26.1% $87.01
  • Video Streaming: Livepeer LPT: 229.7% $23.26

What Other Cryptocurrencies Are Candidates?

According to reports, among these five funds, except for FIL which was registered in October 2020, the rest were registered in December 2020. Compared to the funds registered in the same period in December, BAT, LINK, MANA, XTZ, LPT were registered, with only Tezos XTZ missing out, but still showing an increase of 8.7% in the past 24 hours, outperforming LINK which was selected.

One can perhaps expect the next batch of new funds that Grayscale may launch on January 27, 2021, to include: AAVE, ATOM, DOT, EOS, UNI. Of course, cryptocurrencies registered in February and March may also be launched ahead of time. The details are as follows:

Grayscale Premium, Competition in Purchase Channels

In 2021, Grayscale experienced a premium for the first time. Some analysts believe that the negative premium of GBTC indicates a weakening buying interest from institutional investors in the traditional market and an increase in selling pressure. If this trend continues, it could lead to Grayscale ceasing to acquire Bitcoin in the market. It is also suggested that with a large influx of supply into the secondary market, if demand does not increase at the same rate, a decrease in the premium rate is expected. Media outlet The Block has also mentioned that the decline in buying interest from Grayscale funds in the secondary market may be due to the increasing number of traditional investors accessing cryptocurrency buying channels. Additionally, rumors of Morgan Stanley offering Bitcoin fund services to clients could pose a threat to Grayscale's products.

Shortly after launching the new funds, Barry Silbert, founder of Grayscale's parent company DCG Group, stated, "There is too much money running wild out there, and the outcome will be very dire." It is unknown whether this statement is meant to instill confidence in their own products.