Grayscale Will Soon Launch New Trust Products With 6 Cryptocurrencies

Yesterday, a piece of news about Grayscale quickly spread in the sector:

Some media said that Grayscale will soon launch new trust products with 6 cryptocurrencies including BAT, LINK, MANA, FIL, LPT, and XTZ.

It is now basically recognized that this round of Bitcoin bull market was triggered by institutional investors, and Grayscale is the leader among institutional investors with great influence. Therefore, Grayscale’s words and deeds are highly concerned.

If this news is true, it will undoubtedly set off an upsurge in currencies other than mainstream currencies. In response to this, the well-known media Block Beats also especially verified the authenticity of this information and wrote a long article listing a series of evidence. The conclusion is that the new trusts of these 6 currencies are indeed Grayscale is added.

So what role will this move of Grayscale play on the entire industry and the development of this round of bull market?

1. How about the direct income of the six currencies?

These six tokens will directly benefit, and prices are likely to continue to rise in the future. But what we should pay attention to is how much room for the increase depends on Grayscale’s promotion and propaganda of these 6 tokens. A currency with strong publicity and a good promotion effect will attract more attention and investors. The increase will naturally be high. Otherwise, the performance may be mediocre.

We can see this from the performance of Grayscale’s existing trust funds.

Grayscale’s existing trust funds not only include Bitcoin and Ethereum, but also Litecoin, ETC, etc., and earlier also included Ripple. However, not all of these tokens performed so amazingly. Among them, Bitcoin is the most shining, and it is also the focus of Grayscale’s holdings. Grayscale is not as strong as Bitcoin for other currencies including Ethereum. For Ripple, Grayscale has even been completely liquidated.

This shows that in the future, even if Grayscale officially starts to increase its holdings of these 6 tokens, it will not be fair to take care of each one. It may even be liquidated by Grayscale as the market changes.

So for us investors, when you see this news, we must be calm and don’t buy these 6 tokens immediately after reading the news. Even if you want to buy, you have to analyze it by yourself, which ones are more promising and which ones are more general.

As far as I am concerned, even if I want to buy these 6 tokens, before buying, I will compare my existing investment tokens with them to see if my existing tokens have greater potential or these 6 tokens greater potential? If some of my existing tokens have greater potential, I will only continue to increase my holdings.

Among these 6 tokens, I only like LINK and FIL. The current price of LINK is relatively high, I will not buy it, for the time being, only FIL can consider the layout at present.

2. Judging from the distribution of the six tokens, Grayscale is laying out different areas.

Among the six tokens, BAT is an old token, LINK is a DeFi in a broad sense, MANA is an old token of NFT, FIL is a distributed storage, LPT is a decentralized video application, and XTZ is an old public chain. They are basically in different fields, either old-brand currencies in their respective fields or currencies with relatively strong positions in their respective fields. The biggest feature of this type of currency is that the risk is controllable and the consensus is relatively high. This is also an element that is particularly valued when large funds invest.

Judging from the step-by-step layout of Grayscale, it will definitely not stop here, and more trust funds will definitely be added in the future. Regardless of the market potential or the risk controllable point of view, Grayscale is unlikely to let go of the DeFi market.

Grayscale’s past, present, and future are likely to continue to play a leading role among institutional investors. Its every move will not only affect investors in the currency circle, but also traditional financial institutions. Recently, a new institution has applied to the U.S. Securities Regulatory Commission for a trust fund, hoping to get a share of the market. This trend will only get stronger and stronger in the future.

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Originally published at https://en.icointime.com on January 25, 2021.