Grayscale Launches Crypto Investment Trusts for BCH, ETH, XRP, and LTC
Grayscale Investments has announced the launch of four new single-asset cryptocurrency investment trusts for bitcoin cash, ether, litecoin, and ripple. The company already manages three other single-asset crypto trusts for bitcoin, ethereum classic, and zcash, in addition to a recently-launched crypto large-cap fund.
Grayscale’s Four New Crypto Trusts
Grayscale Investments announced on Tuesday the launch of four new investment products: Bitcoin Cash Investment Trust, Ethereum Investment Trust, Litecoin Investment Trust, and XRP Investment Trust. Michael Sonnenshein, the company’s managing director, commented:
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.
In an interview with Bloomberg, he reiterated that “There will be more offerings coming from the Grayscale family this year,” adding that some will focus on single currencies while others may hold several coins.
Established in 2013 by Digital Currency Group, Grayscale Investments had $2.1 billion in assets under management as of February 28. Prior to today’s announcement, the company was already managing three other cryptocurrency trusts: Bitcoin Investment Trust, Ethereum Classic Investment Trust, and Zcash Investment Trust.
Furthermore, Grayscale announced the launch of its Digital Large Cap Fund last month which invests in BTC, ETH, XRP, BCH, and LTC. The company’s founder and CEO, Barry Silbert, commented at the time, “We’re excited to further expand the universe of Grayscale’s product offerings as interest in the digital currency asset class continues to grow.”
Investing in Grayscale’s Crypto Trusts
Each Grayscale trust’s investment objective is for its shares to reflect the value of the cryptocurrency it holds, “as determined by reference to the Tradeblock index for each digital asset at 4:00 p.m. New York time, less each Trust’s expenses and other liabilities,” the company explained.
According to Grayscale’s website, each of the four new trusts has an annual fee of 2.5%. At inception, the BCH trust has $6.26 million in asset under management, the ETH trust $30.73 million, the LTC trust $495,519, and the XRP trust $490,487.
These trusts are private placements, available only to accredited investors, as defined by Rule 501(a) of Regulation D of the U.S. Securities Act, Grayscale detailed, adding that they do not currently operate a redemption program.” In accordance with Rule 144 under the same act, the company further noted that:
Each Trust’s shares are subject to a one-year holding period…before they can be resold without restriction.