Which Crypto Assets is Grayscale Betting On?
As one of the world’s largest crypto asset management companies, every trust fund launched by Grayscale garners significant attention from the crypto market. For the market, these trust funds provide legitimacy and recognition for specific crypto assets.
On August 22, Grayscale launched the AVAX trust fund, Grayscale Avalanche Trust, aimed at offering investment opportunities in AVAX to qualified investors. Beyond AVAX, what other assets is Grayscale focusing on? In this article, Bankless compiles the crypto asset trust funds Grayscale has launched during this market cycle.
As a veteran institution in the crypto asset management field, Grayscale has been particularly active recently.
Whenever Grayscale announces a new trust fund for a particular asset, the market’s reaction is often mixed. For some, it’s a double-edged sword: some see it as a sign of market saturation, while others view it as a new beacon of hope.
Some might interpret the launch as an indication that the market for that asset is nearing saturation, or at least that its growth potential in the crypto space is limited. On the other hand, it also serves as a mark of recognition from a major player in the crypto space, potentially bringing legitimacy to the asset, attracting institutional investors, and at least increasing media attention.
Recently, Grayscale has accelerated the launch of new investment products, indicating their strong belief that we are in the mid-phase of a crypto bull market. The driving forces of this bull market include inflows from the Bitcoin ETF, the anticipated launch of an Ethereum ETF, increased adoption of stablecoins, and the steady growth of Total Value Locked (TVL) in DeFi.
As a quiet giant in the industry, investors continue to closely watch Grayscale’s investment moves to gauge their outlook on the industry’s future direction. Which assets have caught their attention during this cycle? Let’s take a closer look.
Grayscale Decentralized AI Fund (FIL, NEAR, RNDR, LPT, TAO)
The Grayscale Decentralized AI Fund is the first fund to invest exclusively in native tokens of decentralized AI protocols. Currently, the fund includes Filecoin, Near, Render, Livepeer, and Bittensor.
Grayscale notes that there are concerns about a future dominated by centralized AI, while crypto technology is poised to create a fairer and more transparent ecosystem. They believe that although the combination of crypto and AI is still in its early stages, the future looks promising. By leveraging the power of crypto, we can build a more equitable, transparent, and trustworthy AI ecosystem.
Grayscale Dynamic Income Fund (SOL, CBETH, NEAR, etc.)
The Grayscale Dynamic Income Fund (GDIF) aims to maximize returns by capitalizing on the growing staking rewards of tokens like SOL, ETH, and NEAR. The fund strategically allocates capital to tokens with attractive staking yields to maximize returns.
Grayscale is known for its diversified approach to crypto investments. While they usually diversify across various sectors, GDIF marks a new frontier: diversification across different types of tokens. This provides investors with a unique opportunity for returns beyond the basic token appreciation potential.
Other Trust Funds
Grayscale NEAR Trust (NEAR)
Grayscale considers NEAR a rising star in the crypto space, standing out due to its strategic focus on AI and chain abstraction.
NEAR’s vision of user-owned AI is ambitious, but its active developer community, growing user base, and ample funding support make it capable of achieving this goal. As global acceptance of AI continues to grow, NEAR is likely to become the platform of choice for developers and users alike.
Grayscale Stacks Trust (STX)
Stacks is Grayscale’s bet on the Bitcoin Layer 2 (L2) space. By building a smart contract-enabled L2 solution on top of Bitcoin, Stacks addresses Bitcoin’s scalability and functionality challenges. This approach allows developers to build various applications on the Bitcoin blockchain.
As the Bitcoin ecosystem continues to evolve and more DeFi activities are incorporated, the demand for scalability and cost reduction will become more pressing, and Stacks offers a solution to this problem.
Grayscale MakerDAO Trust
MakerDAO is a veteran project in the DeFi space, and MKR is its native governance token, key to participating in the ecosystem. The launch of the Grayscale MakerDAO Trust comes as interest in blue-chip DeFi projects and their tokens is resurging.
Grayscale believes that MKR provides investors with access to diverse opportunities within the MakerDAO ecosystem, including on-chain credit protocols, stablecoins, and real-world assets.
Grayscale Bittensor Trust (TAO)
Bittensor’s vision is to create an AI that is not just a tool in the hands of a few companies but a resource shared by everyone. It aims to create an “AI internet” where everyone can participate and benefit from AI models.
TAO encourages participants to contribute to the network by verifying models and running AI computations in exchange for rewards.
As the AI race among major tech companies intensifies, Grayscale believes that Bittensor offers an alternative approach that encourages broader participation and diverse thinking in AI development.
Grayscale SUI Trust (SUI)
Sui boasts a unique blockchain design that prioritizes scalability and user experience. It allows for parallel processing, enabling the simultaneous handling of multiple transactions.
Sui’s competitive edge lies in its specialized programming language, Sui Move, which simplifies smart contract development and execution.
As the demand for block space and faster execution in the crypto space increases, Grayscale believes that Sui opens the door to a new era of decentralized applications that were previously unattainable due to the limitations of existing blockchain infrastructure.
The Grayscale Effect
Overall, the impact of a Grayscale trust launch on a specific asset is highly subjective. It doesn’t guarantee that the asset will achieve great success. For instance, take Grayscale’s Decentraland Trust (MANA) as an example.
The key takeaway is that Grayscale’s bullish stance on the crypto market is evident in their recent product launches. They believe we are currently in a bull market and are positioning themselves accordingly.