Grayscale, which has previously set up the Bitcoin Investment Trust (GBTC), is now pushing ahead with plans to expand its presence in the world of cryptocurrencies.
The funds will bear similar names, including Bitcoin Cash Investment Trust, Ethereum Investment Trust, Litecoin Investment Trust, and XRP Investment Trust, and represent some of the cryptocurrencies that have been taken up by the company.
As their name suggest, these new funds will deal with Bitcoin Cash, Ether, Litecoin and Ripple, which are also some of the fastest cryptocurrencies that have gained considerable clout over the last years.
With the intensification of regulation, having a company such as Grayscale signal their preparedness on taking on some major challenges in the sector, it is quite the relief to be an investor in the crypto world.
Grayscale also bring their personal methodology in the sector and together with Abra (albeit through their individual efforts), these two companies are trying to add liquidity to cryptocurrencies. In other words, you will see more investors readily going after all sorts of cryptocurrencies, knowing full well that nothing bad can happen to their investment when an established company is managing their money.
Grayscale Investments, LLC (“Grayscale”), the sponsor of the Bitcoin Investment Trust (OTCQX: GBTC), the Ethereum Classic Investment Trust and the Zcash Investment Trust, announced today the launch of a new investment vehicle, the Grayscale Digital Large Cap Fund LLC (the “Fund”). The Fund intends to hold the top digital assets by market capitalization that meet Grayscale’s fund construction criteria in a market capitalization-weighted portfolio. A trusted authority on digital currency investing, Grayscale has assets under management of $1.31 billion.
The fund will operate as a trust initiative, meaning that everyone will need to deposit their money for a period of at least one money. This is understandably a risky move with cryptocurrencies.
In other words, investors cannot leave the trust until they have reached one year of stay in it, and those restrictions will ensure the overall stability of the initiative. With the prices of cryptocurrencies being so volatile, it is understandable why people might panic and decide to pull out, but Grayscale has wisely foreseen this major qualm.
Grayscale has amassed $2.1 billion in various assets that pertain to the GBTC. The fund is quite nifty when it comes to ensuring that participants will not take any risk that is related directly to how the crypto currency changes.
Of course, cryptocurrencies are here to stay and introducing meaningful regulation as well as meaningful investment companies will guarantee that crypto gold is here to stay longer and even become the future of all money.
It is an interesting conundrum. On the one hand, you will see people readily disparaging the mainstream banking system and finding it as overstuff, but then again they will draw on the same age-old practices that introduce regulation into the sector.
It is quite simple. If people want to turn a pretty penny on Bitcoin and the fraternity of cryptocurrencies, this is quite feasible and you will not have to worry about a thing. However, if they want to be sure that their investment will be safe, they will have to entrust their money to someone. Grayscale is just one of the many examples.
Wallets and exchanges that store your cryptocurrencies are also partly capable of compromising you if anonymity is your utmost priority. With this in mind, the argument that we would rather put our trust in private companies rather than the heavily regulated banking industry is a tad batty.
Truly, there is a lot of taxation in the mainstream and the money transfers are quite difficult and slow. However, there is also the plain fact that regulation is coming to cryptocurrencies and that every owner will have to pay tax, because just as with any other form of good, you will have to pay your due in order to maintain the overall order and stability of a country. The idea that you can just own goods and not pay tax on them is ludicrous.
It simply means that the people who manufacture those goods have to build their own roads to be able to transport them to the shops from where you can snap them up with you newly-minted and tax free money. This premise is insulting to everyone who has ever put a hard day’s work in.
Grayscale’s funds are definitely tempting and the future of money could indeed be digital. However, people will have to acknowledge the simple truth that everyone should pay their due.