Crypto News

Grayscale is Considering Expanding its Crypto Product Offering With Avalanche and Terra – CoinCheckup Blog

Leading digital currency asset management firm Grayscale has announced it is exploring adding Terra and Avalanche digital assets to its product family of supported crypto assets. With the company’s total assets under management (AUM) being just a tad over $56 billion, Grayscale holds considerable sway in the cryptocurrency industry. The addition of LUNA and AVAX could play a massive role in the continued development of both projects.

Key takeaways:

  • According to Grayscale’s blog entry and yesterday’s Twitter post, Avalanche and Terra have been put on the list of ‘Assets Under Consideration’. With the latest addition of the two decentralized finance (DeFi) networks, the list now features 20 blockchain projects, including Cosmos, Polkadot, and Solana. 
  • Grayscale noted that “not every asset under consideration will be turned into one of our investment products,” and added that creating new investment products “requires significant review and consideration and is subject to substantial internal controls, sufficiently secure custody arrangements, and regulatory considerations.”
  • Grayscale, a subsidiary of Digital Currency Group (DCG), is the world’s largest asset manager for digital currency. Most notably, Grayscale’s Bitcoin Trust (GBTC) accounts for by far the biggest share of the investment firm’s assets under management, with $40 billion (representing roughly 70% of total AUM).
  • The company currently operates 13 cryptocurrency trusts, based on the same number of underlying crypto assets, including BTC, ETH, LINK, LTC, and XLM, just to name a few.
  • On the same day that the first US-traded Bitcoin futures ETF debuted last month, Grayscale filed an application to turn the $40 billion Grayscale Bitcoin Trust into an exchange-traded fund. It is worth noting that the Securities and Exchange Commission (SEC) has yet to approve a single non-derivative-based Bitcoin ETF. 
  • Following the news of potential inclusion into the Grayscale investment product family, prices of AVAX and LUNA soared to new all-time highs within the last 48 hours.

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