Grayscale Investments, the firm that runs the popular Bitcoin Investment Trust GBTC, has announced it’s launching four new funds focused on other popular cryptocurrencies.
What Happened
Grayscale said it’s launching a Bitcoin Cash Investment Trust, an Ethereum Investment Trust, a Litecoin Investment Trust and an XRP Investment Trust, presumably all structured in a similar way as the Bitcoin Investment Trust.
“Our team is committed to bridging the gap between the global investment community and the digital currency asset class,” Grayscale managing director Michael Sonnenshein said in a statement.
Why It’s Important
Bitcoin, Ethereum, Ripple, Bitcoin Cash and Litecoin are the five largest global cryptocurrencies by market cap and represent the only five digital currencies valued at more than $1 billion each.
The U.S. Securities and Exchange has yet to approve a cryptocurrency fund for listing on a major U.S. exchange, leaving the GBTC fund as one of the only games in town for traders. As the popularity of bitcoin has skyrocketed in the past year, so too has the GBTC fund. The GBTC fund is now up 1,150 percent in the past year.
Aryan Nava 