Grayscale Discloses 13 DeFi Centered Cryptos Under Review
Grayscale announced a list of additional crypto assets that the asset management business is contemplating including to its trusts on May 17th. The bulk of the 13 crypto assets listed are centered on decentralized finance (DeFi), an industry whose appetite has surged in recent months. 1inch, Bancor, Polygon, Kyber Network, and Ren are just a few of them.
Whilst putting these assets under evaluation by the company is a significant step, there is no assurance that they will be included to the trust. Grayscale makes it apparent that not every asset will be converted into a product.
This was the case historically with Cardano, Tezos, and Eos. The business eventually discarded the crypto assets after they were offered for review. With just 5 new trusts established on March 17th, the company’s 13 crypto assets demonstrate increasing appetite for new products. Filecoin, Chainlink, Basic Attention Token, Livepeer, and Decentraland are among them.
The inclusion of additional crypto assets makes the tokens more accessible to potential investors, most of whom are institutional. As a result, demand and prices are pushed higher. This year, a lot of the assets mentioned above are seeing unprecedented growth.
For example, Polygon’s total value locked (TVL) has surpassed $10 billion. On rare occasions, the venture has outperformed both Binance Smart Chain (BSC) and Ethereum in terms of daily active wallets. Despite a general market downturn, CNF’s native token MATIC has witnessed substantial increase in recent months.
Grayscale has exploded in popularity in recent years.
As per to their most recent report, the asset management business has $34.4 billion in assets under management. According to CoinShares statistics, this accounts for 75% of the $44.3 billion in assets handled in institutional crypto investment products.
The trusts have received over $2 billion in cash in 2021. With a 73 percent stake, the Bitcoin trust is the most popular. The Etherum trust is the second-largest, accounting for 22% of all trusts. The remaining trusts account for 5% of the overall AUM.
The surge reflects an increase in institutional and retail appetite for crypto assets. Grayscale CEO Michael Sonnenshein indicated that investors are optimistic in crypto in a latest interview with CNBC. This trust, according to the CEO, derives from countries beginning to establish clear regulatory rules for cryptoassets.
The CEO also stated that the present downturn provides an opportunity for investors to stockpile before the next significant shift.
We’re always exploring new assets that can help us grow our family of investment products. Here are 13 additional we’ll explore: $1INCH $BNT $CRV $ICP $KAVA $KNC $LRC $NEAR $MATIC $REN $SOL $UMA $ZRX. Follow along to get updates as we expand this list! https://t.co/5BU92rVZOM
— Grayscale (@Grayscale) June 17, 2021
As of June 15th, Polygon’s TVL has exceeded $10billion, and it is currently $10.23billion, an increase of 57.9% in the past three days, AAVE accounting for 37.14%. Polygon’s average daily trading volume is 614.2% of Ethereum. pic.twitter.com/wJFmp218vk
— Wu Blockchain (@WuBlockchain) June 15, 2021