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As Bitcoin (BTC) Exchange Traded Funds (ETFs) gain in importance in Canada and new competitors for grayscale emerge, the company is increasingly focusing on altcoins. (Updated at 16:17 UTC: updates throughout text.)
The major crypto asset management firm of the Digital Currency Group (DCG) has confirmed that it is researching at least 23 different digital assets “for potential new product offerings,” according to the press release.
Among the named assets currently under review, the company listed the following:
“We may not make each of these assets one of our game-changing investment products,” said Michael Sonnenshein, CEO of Grayscale, adding that “it is our responsibility to introduce investors to more diversity in this space.”
There is no guarantee that the assets featured in the above list will receive a corresponding investment product, the company emphasized. “The process of creating an investment product that is structured in a similar way to the grayscale products already on offer requires extensive review and testing and is subject to extensive internal controls, sufficiently secure custody agreements and regulatory considerations,” it continues.
All newly created products from Grayscale will be announced separately at launch.
Meanwhile, the world’s largest BTC fund is selling out as investors rush to the exits. According to Bloomberg data, the $ 31.6 billion grayscale bitcoin trust fell 21% this week, beating Bitcoin’s own decline (currently 12% last week). The trust holds 655,750 (USD 31 billion) over BTC.
“It’s more of an indication of the fact that so many stocks are available, and it indicates that the demand for Bitcoin at those prices is decreasing,” said James Seyffart, an analyst at Bloomberg Intelligence.
Speaking at the Bloomberg Crypto Summit on Thursday, Sonnenshein said of the risk of the GBTC premium disappearing, saying, “It’s certainly a risk, no question about it, but ultimately, pricing in GBTC is driven solely by market forces every day.”
Grayscale’s trusts are helping investors invest in cryptoassets through a more traditional investment vehicle by buying publicly traded stocks. These trusts contain the underlying crypto-asset, while the value of each release of a trust depends on the amount of crypto-asset managed.
Meanwhile, ETFs appear to be starting up in Canada, offering investors more alternatives to invest in BTC. In February of this year, two ETFs were created in Canada:
- The country’s securities regulator, the Ontario Securities Commission, approved the launch of the Purpose Bitcoin ETF by Toronto-based asset management company Purpose Investments Inc.
- Evolve Funds Group Inc. announced the launch of its Bitcoin ETF, which traded under the ticker symbol EBIT on the Toronto Stock Exchange.
As recently reported, Ninepoint Partners, a Canadian fund that went public after raising $ 180 million from private investors, listed its shares on the Toronto Stock Exchange along the lines of Grayscale.
In the US, eight companies have tried and failed to create a Bitcoin ETF since 2013, Reuters reported, citing Todd Rosenbluth, director of ETF and mutual fund research at CFRA in New York.
“While some expect a Canadian ETF approval to create the conditions for short-term US approval, we expect the SEC, under new leadership, to take time to review some of the new filings from VanEck and others,” Rosenbluth was quoted as saying .
What the increased competition could mean for Grayscale, Nate Geraci, president of consulting firm ETF Store told Bloomberg, although we’ve seen several competing products launched this year, “the nasty truth for GBTC investors is that competition is waning in demand the product, which can lead to a collapse in the premium or even a discount. “
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