Recently, Grayscale updated its asset list on the official website, introducing two new assets, Avalanche (AVAX) and Terra (LUNA), into the list of Assets Under Consideration. Since Avalanche, a leading new public chain, started the massive ecosystem incentive program, its ecosystem has achieved exponential growth. According to statistics from markr.io, the protocol TVL of Avalanche has exceeded $20 billion, no lower than peers like Solana and Fantom.
Assets Currently in Grayscale’s Product Family & Assets Under Consideration
Terra, another new project in Grayscale’s asset list, is a trending stablecoin project. Supporting 19 fiat-anchored stablecoins, this public chain has built an enormous stablecoin-centered DeFi ecosystem backed by the Anchor Protocol (a lending platform providing a fixed interest rate), the Mirror Protocol (a DeFi protocol focusing on synthetic assets), and Chai (an offline mobile payment application). Terra is now one of the hottest stablecoin projects.
Terra’s ecosystem landscape
We can tell that the projects in Grayscale’s Assets Under Consideration are all hot crypto assets in their segment. To date, Grayscale has launched 15 crypto-based products, with a total crypto holding of $51.141 billion. There are also many trending crypto projects in its holdings. For example, to traditional investors who find it troublesome to learn and manage metaverse-related assets, Grayscale Decentraland Trust could be seen as a passive approach to the metaverse investment. Launched at the end of February, this product has reached $74.5 million in AUM, a two-fold increase in the past two months.
Grayscale’s products
With Grayscale’s products, conventional investors can better invest in crypto assets. In addition to Grayscale’s trust fund of crypto assets, the average investor can also trade Bitcoin-related products on the US stock market, since the SEC has approved the listing of the Bitcoin futures ETF. For many believers in crypto assets, this is a signal that the SEC has embraced crypto assets and that Bitcoin spot trading may soon enter mainstream financial markets.
Grayscale also believes that the SEC approval shows that it is satisfied with Bitcoin as an underlying asset. As such, the institution has recently submitted an application to the SEC to convert GBTC into a Bitcoin ETF. Grayscale said that it intends to turn the 14 other investment products into ETFs as well to offer improved trading experiences for investors. After all, only qualified high-net-worth investors and institutions can invest in trust funds. In light of this, ETF is apparently one of the best ways for allowing more regular individual investors to trade crypto-based products. Once the SEC gives the green light to Bitcoin spot ETFs, BTC investments would be a lot more accessible.
At the moment, GBTC is the world’s largest BTC investment product, holding about 3.5% of the crypto’s total supply, making Grayscaleone of the World’s Largest 500 Asset Managers, a list released by Thinking Ahead Institute. It is also the first crypto fund ever included in the list. Considering its massive size, Grayscale is a major crypto whale that is too big to ignore. The institution is also one of the key compliant channels for traditional investors to foray into the crypto market.
The expanded product scope of Greyscale indicates that the conventional investment market has become more interested in crypto assets. Additionally, the increasing product diversity shows that as the crypto market expands, the conventional investment market no longer just focuses on Bitcoin, which is a phenomenal product. Instead, it is exploring the entire crypto market and has noticed many emerging segments and products. For instance, conventional institutions have been keeping an eye on crypto segments such as public chains, DeFi, NFT, and the metaverse.