Crypto Videos

Grayscale About To Unveil Chainlink?

Is Grayscale about to unveil a Chainlink (LINK) trust?

Rumors about Grayscale Investments being set to launch a raft of new products, including a Chainlink (LINK) trust, surfaced in the last week.

A statement from the State of Delaware’s Division of Corporations says that someone set up Grayscale Chainlink Trust on Dec 18, 2020. Basic Attention Token (BAT) trust, Livepeer (LPT) trust, Decentraland (MANA) trust, and a Tezos (XTZ) trust were also set up at the same time.

Grayscale Investments didn’t respond to the rumors and has yet to officially confirm it is behind the filings at all. Some reports tried to cast doubt on the legitimacy of this whole ordeal, as the registered agent for the trusts is not listed as Grayscale Investments, but rather as “Delaware Trust Company.” 

However, the Delaware Trust Company is currently listed on Grayscale’s website as one of its official service providers. On top of that, the same details were used when the Grayscale Bitcoin Trust was initially created in 2013.

With that being said, new trusts are far from certain to launch. A Filecoin (FIL) trust was established two months before the aforementioned trusts and still has not been made public.

Adding to all the uncertainty, a few weeks after the inception of numerous trusts, Grayscale founder and CEO Barry Silbert decided to step down from its position. He was then replaced by Michael Sonnenshein. It is unclear if Sonnenshein will continue with Silbert’s strategy or take the firm in a completely new direction.

Grayscale last made an official filing for a Stellar Lumen (XLM) trust in October 2018 — over two years ago. The Stellar trust was made public around six weeks after its inception.

The Chainlink army has been very vocal about the potential filing, showing its support and speculating on the effect this might have on the LINK’s price.

Chainlink recently flipped Bitcoin Cash and became the eighth-largest cryptocurrency by market cap, boasting a value of over $9 billion. 

Crypto Videos

Grayscale GBTC Faces Competition!

GBTC Faces Competition in the OTC Bitcoin Trust Market

Osprey Funds has just entered the crypto sector and is trying to become Grayscale’s competitor. The firm is offering an over-the-counter Bitcoin trust under the ticker symbol OBTC. The trust Osprey offer is similar to Grayscale’s Bitcoin Trust, also known as GBTC.

“The Osprey Bitcoin Trust provides an easy access to Bitcoin,” the firm’s website says. They charge a 0.49% management fee, which is the lowest cost solution currently on the market. As they stated, Osprey is an entity that “builds digital asset solutions for intelligent investors,” with the OBTC trust considered its “flagship offering.”

“OBTC began operating and being quoted in the OTC market on Friday, Jan 15,” Osprey Funds’ CEO, Greg King, said, adding:

“As of Jan 14, the product met all the requirements to become quoted under the OBTC ticker in the OTC market. In the next 30 days, the fund will attempt to become DTC eligible, and after Feb 14, all additional market makers will be allowed to quote it. 

Osprey’s launch in the BTC trust market is a direct poke at the largest Bitcoin trust, Grayscale. Grayscale has become one of the largest BTC holders in the world, currently possessing over 500,000 BTC.

GBTC stepped into the market with the idea to provide the public with easier access to Bitcoin through more traditional avenues, all while not even requiring them to custody their own funds. GBTC comes with a yearly 2% management fee, which is where Osprey wants to step in and beat the competition. Osprey’s recently unveiled BTC trust announced a management fee of only 0.49%. 

“We are always happy to see cryptocurrency access products enter the market, especially here in the US,” CEO of Grayscale Michael Sonnenshein told Bloomberg.

Accredited investors will require a $25,000 minimum to buy directly into the trust. Additionally, OBTC shares have a lock-up period of one year before they can be sold in the secondary market. As a comparison, Grayscale’s Bitcoin Trust requires a six-month lock-up. However, based on King’s comments to Bloomberg, the public may expect Osprey’s lock-up period to be cut in half in the near future.

Crypto Videos

Grayscale Extremely Bullish on Bitcoin! The Next Bull Run Is Now!

Grayscale Extremely Bullish on Bitcoin: Bitcoin Market ‘Looks Like 2016, Before Historic Bull Run’

A new report coming from crypto fund manager Grayscale Investments proposes an argument that Bitcoin’s market structure currently “parallels that of early 2016, right before Bitcoin began its historic bull run.”
Grayscale predicts that the demand for Bitcoin will grow significantly as inflation accelerates, therefore highlighting the need for a scarce monetary commodity.
The report identifies many on-chain indicators that show growing interest in cryptocurrencies, noting an increase in long-term holding rather than short-term speculation. Grayscale also notes that the number of daily active addresses is at the highest level since 2017’s all-time highs.

Grayscale notes that the increasing dependence of the US economy on quantitative easing to simply stay afloat and that history shows that this is a difficult addiction to quit.
Despite the US dollar remaining “structurally quite strong relative to other currencies,” the report also shows that investors are constantly searching for ways to protect against the, now than ever, ever-expanding money supply. Grayscale also notes that the investors found Bitcoin to be a good a store of value and a great protection against inflation, simply due to its deflationary nature.

Grayscale cites the scoring system that is used by hedge fund manager Paul Tudor Jones and which assesses Bitcoin’s attributes against other financial assets, such as cash, gold, and others.
Quoting Jones, the report noted:
“What was surprising to me was that Bitcoin scored as high as it did. BTC had an overall score of almost 60% of that of financial with a market cap that is 1/1200th of that. Bitcoin scored 66% of gold as a store of value with a market cap just 1/60th of gold’s total value.”
Paul Tudor Jones then added that “Something appears wrong here and my guess is it is the price of Bitcoin.”

Crypto Videos

Grayscale Can Now Publicly Trade BCH and LTC! FINRA Approved!

Grayscale Can Now Publicly Trade BCH and LTC – Approved by FINRA

Crypto fund manager giant Grayscale Investments will now make Bitcoin Cash and Litecoin available for public trading. This will be done through shares of the firm’s cryptocurrency trusts.

A July 20 announcement stated that Grayscale got verified by the Financial Industry Regulatory Authority (FINRA for short) to transact shares of the firm’s Bitcoin Cash Trust as well as Litecoin Trust. The two stocks will be available for public trading very soon. They will go under the tickers BCHG and LTCN.

Grayscale reported that it has 2,725,300 shares in its BCH Trust for $5.8 million assets under management, as well as 509,400 shares of the LTC Trust totaling $2 million as of June 30.
Publicly traded tokens
Grayscale’s trust will provide a means of investing in crypto without actually having to hold the tokens. According to the investment firm, this investing strategy avoids “the challenges of buying and storing digital Bitcoin Cash or Litecoin directly.”

Shares of BCH and LTC are the fourth and fifth public offerings that came from Grayscale. The firm previously received approval to list shares of Bitcoin, Ethereum, and Ethereum Classic. Horizen, Stellar Lumens, XRP, and Z-cash, are available for trading through Grayscale’s trust directly.

At the time of writing, Bitcoin Cash and Litecoin are valued at $251.11 and $48.37, respectively. According to CoinMarketCap, BCH is rated as the fifth largest token by market cap, while LTC is the eight.

Crypto Videos

Grayscale Stopped Buying Bitcoin! What This Means For Bitcoins Future Price!

Grayscale Stopped Buying Bitcoin – What Happened?

For several months, Grayscale Investments was buying more Bitcoin than miners were able to produce. However, this trend came to a halt a few weeks ago.

Grayscale Bitcoin Trust Fund would file a Form 8-K with the SEC on a weekly basis, declaring its most recent Bitcoin acquisitions. However, the last report was filed on June 25, when the company disclosed that it purchased almost 20,000 BTC. The lack of reports after June 25 indicates that Grayscale completely stopped buying Bitcoin. According to its Q2 report, GBTC invested an average of $57.8 million per week.

A Grayscale spokesperson said that the halt in BTC purchases is only temporary, and is caused by a quiet administrative period.

Grayscale indicates institutional interest in Bitcoin

One thing to note is that GBTC is not a hedge fund, which means that it doesn’t buy assets and expects a return on them. Rather, the trust buys assets only when investors buy shares of the trust. As 84% of Grayscale’s investments came from institutional investors, mostly hedge funds, Grayscale buying Bitcoin is a great indication of institutional interest in crypto.

July tends to be a somewhat slow month for investment activity due to many asset managers taking vacations, which may have caused Grayscale to stop buying Bitcoin. Another reason might be that institutions lost some short-term interest due to Bitcoin not moving much recently. Bitcoin has been stuck price-wise ever since early May.

Crypto Videos

Grayscale Will Own 3.4% of All Bitcoin By January! The Monopoly Continues!

Grayscale Owning 3.4% of All Bitcoin by January – What’s Happening!?

It is not a secret that Grayscale Investments has been buying a lot of crypto lately. The company has purchased almost half a billion dollars worth of Bitcoin since the block reward halving in May. On top of that, Grayscale bought around three times the BTC block reward for the past week.
According to a June 25 tweet coming from crypto analyst Kevin Rooke, Grayscale bought 19,879 Bitcoin — worth $184 million worth — just in the last week. This brings Grayscale’s total number of coins to roughly 400,000.
Rooke added that “Grayscale *alone* has taken all BTC mined and 14,000 more BTC on top of that since the halving.”

Grayscale becoming a crypto giant

At this moment, there are 18.415 million BTC in circulation, while the rest are presumed lost. Grayscale managed to buy 53,588 BTC in total since the May 11 halving, which would equate to an average of 1,190 BTC per day. If Grayscale keeps buying at this same daily rate, it will own exactly 3.4% (or 625,069 BTC) of the world’s BTC supply by January 2021 and 10% of the world’s BTC supply by the time of the next halving in 2024.

Grayscale and the rest of the cryptocurrencies

Besides buying enormous amounts of Bitcoin, Grayscale is investing in Ethereum as well. Grayscale’s Ethereum Fund owns $396 million in Ether. Grayscale had, as one report shows, purchased $110 million worth of Ethereum in 2020 as of June 5.

Crypto Videos

Is There No Way to Cash Out From Grayscale? #Fail


Is There No Way to Cash Out From Grayscale’s BTC Trust

Qiao Wang, an investor, analyst as well as head of product at the crypto market data firm Messari, raised some major criticism about the way Grayscale’s Bitcoin Trust is set up.
In his tweet dating June 11, Wang cited Grayscale’s official website, which says that “Grayscale Bitcoin Trust does not (at the moment) operate a redemption program, which means it may halt creations from time to time.” Wang suggested that the absence of a redemption mechanism might result in GBTC trading at a discounted rate compared to the net asset value.

He later explained that, when an exchange-traded fund (ETF for short) trades at a discounted rate compared to the fund’s underlying assets, traders performing arbitrage can buy the contract on an exchange and then redeem it for the assets that back it.
“Without the ability to redeem Bitcoin, you are just donating your money to Grayscale.” – Wang said.

Grayscale’s growth since the Bitcoin halving

Recent news clearly shows that Grayscale’s cryptocurrency holdings are growing at an extraordinary rate. Grayscale has bought Bitcoin one and a half times faster than the miners were producing since May 11, which is the date of the Bitcoin block reward halving.
On top of that, Grayscale’s director of investor relations, Ray Sharif-Askary, has recently announced that Grayscale has also been aggressively buying Ethereum as well.