Grayscale Investment, released it crypto assets undermanagement statement and it had an element of surprise. The second highest net asset under management in the portfolio was Ethereum Classic which stood at USD 70.5 mn only second to Bitcoin. Will all eyes are on ETC’s Coinbase listing, this news seems to be a bigger positive for the coin.
Grayscale’s offering include has 7 single asset products where Ethereum Classic stands second
According to the statement released on Twitter, Grayscale currently has 7 single asset products which include sponsored investment trusts of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, XRP, and Zcash. It also has a diversified Digital Large Cap Fund which includes a combination of Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC). The weightage in the fund as per their market cap weights.
— Grayscale (@GrayscaleInvest) August 9, 2018
With regards to the Ethereum Classic Investment Trust, Grayscale enables investors to gain exposure to the price movement of ETC through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping ETC. Although it was incorporated in April 2017, Grayscale Ethereum Classic Investment Trust, this is the first time ETC has moved to second place in the list of holding where each share of ETC Investment trust constitutes to 0.96257972 ETC. Eligible shares are quoted on the OTCQX®, the top marketplace operated by OTC Markets under the Alternative Reporting Standards. Investors can buy and sell shares through most traditional brokerage accounts at prices dictated by the market.
Grayscale has been operating since 2013 and since then has been a trusted authority on digital currency investing. Since then it has it has swiftly grown and today manages digital assets worth USD 1.6 billion.
Also, read: Ethereum Classic Finally gets Added to Coinbase
Why Grayscale likes Ethereum Classic
As per the investment thesis document that the company released in August 2017, Grayscale titles Ethereum Classic as “Store-of-Value Commodity to Power the Internet of Things”. The document describes Ethereum Classic
“as a next-generation blockchain platform for a new internet infrastructure – one that can dramatically enhance the ways that information and value are shared in the digital economy, unlocking trillions of dollars in untapped economic surplus in the process. Featuring a flexible and intuitive smart contract programming platform that is powered by ETC, we believe Ethereum Classic may one day be the substrate for a global, secure, and decentralized Internet of Things (IoT)”.
According to Grayscale, Ethereum Classic has two key values,
- being a store of value and
- being Commodity that Powers the Internet of Things
ETC clears all the criteria that Grayscale looks at in a store of value which includes Scarcity, Divisibility, Portability, Fungibility, Verifiability, and Recognizability.
As far as Commodity that Powers the Internet of Things criteria is concerned Ethereum Classic provides the greatest opportunity to achieve a global IoT, as a scalable technology platform with superior features along with dimensions of Data Security & Privacy, Interoperability, and Economic Incentives. Also as Ethereum Classic promotes economic growth in innovative ways, ETC gives investors an opportunity to build more efficient portfolios.
With all the above-mentioned points and being a distinct, uncorrelated asset, ETC does help Grayscale in broadening its digital currency allocation and further diversify investor portfolios to help them achieve their investment goals.
Will backing of Grayscale change fortune of Ethereum Classic? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.