Stellar has gained the trust of Grayscale Investments, and so will follow the path of single asset trusts such as Bitcoin Investment Trust ($GBTC).
Grayscale tweeted the announcement through Twitter-
1/ We are excited to announce two big developments! First, today marks the launch of Grayscale Stellar Lumens Trust! Investors can now gain exposure to the price movement of XLM through a traditional investment vehicle. For more info go to https://t.co/izJooCsKwS
— Grayscale (@GrayscaleInvest) January 17, 2019
Hence Stellar will have a platform whereby it will help investors gain coverage towards Stellar Lumen’s native token lumens (XLM).
The managing director of Grayscale Investments fully supports Stellar as he believes it has a strong use case of being a bridge currency in transnational money corridors.
The data from Grayscale’s website states that Stellar Lumens Trust will begin with $0.4 million, under management. It equals to 3,870,000 XLM held by Grayscale’s offering.
The tweet also released information on renaming certain single asset trusts. The following are the new names for the products-
- Grayscale Bitcoin Trust™
- Grayscale Bitcoin Cash Trust™
- Grayscale Ethereum Trust™
- Grayscale Ethereum Classic Trust™
- Grayscale Horizen Trust™
- Grayscale Litecoin Trust™
- Grayscale Stellar Lumens Trust™
- Grayscale XRP Trust™
- Grayscale Zcash Trust™
Grayscale is a wholly-owned subsidiary of Digital Currency Group. It builds, buys, and invests in more than 130 blockchain companies around the world.
Stellar’s idea of cheap and fast transactions, makes it a front running competitor against Ripple who has been gaining sufficient coverage, especially from its banking partnerships.
Stellar is founded by the brains behind Ripple and Mt. Gox, Jed McCaleb. It is working towards a low-cost payment network and has attracted heavyweights such as IBM which is working towards a cross-border payment rail on top of the network. XLM is currently the sixth most valuable cryptocurrency, with a value of $0.109884 and a market capitalization of $2,101,995,418 at the time of writing.
As for the institutional investors, this news rides high regarding cryptocurrencies being trusted.
Image Source – Flickr
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