How Cryptocurrency Investment Works With Grayscale Trust

Grayscale Trust made the headlines recently when it emerged that the firm was selling its ETH investment higher than the market price of retail ETH. Yes, it was for a good reason. Its trust has a ROI that beats the market. Here are more insights.

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How to invest in Grayscale Trust Crypto

The Grayscale Crypto Trust is the world’s largest and fastest-growing crypto and digital asset investment product, with $7.5 billion in managed assets as at the end of September 2020.

Grayscale offers investment exposures and well-researched market insights into developing crypto assets that enthusiasts and individual investors can purchase and sell off on their brokerage account.

The Grayscale Crypto trust portfolio offers several crypto products, with its Bitcoin Trust being the largest selected investment by far, accompanied by its Ethereum Trust. Other products include Litecoin Trust, Bitcoin Cash (BCH) Trust, Stellar Lumens Trust, ZCash Trust, Ethereum Classic Trust, Horizen Trust, XRP Trust, and Digital Large Cap Fund (holds multiple digital assets in one portfolio).

What does Grayscale Trust Crypto offer?

It is a portfolio of cryptos that provides alternate means of investment to specific investors, intending to secure their investments from market uncertainties, while precipitating positive yields regardless of market bias.

To better understand this subject, let’s take a quick look at Grayscale’s Investment Services. These services are categorized into Single-Asset and Diversified Products.

Single-Asset Grayscale Products

  1. Grayscale BTC Trust: This is a flagship product, and it’s symbolized as GBTC. It is exclusively invested in Bitcoin (BTC), and it lets investors gain insight into the price mechanics of BTC while eliminating the challenges associated with directly purchasing, storing and securing BTC.  
  2. Grayscale BCH Trust: Offers an alternative and effective approach for E-cash.
  3. Grayscale ETH Trust: Decentralized platform powered by smart contracts.
  4. Grayscale ETH Classic Trust: Flexible Currency for IOTs.
  5. Grayscale Horizen Trust: This product is a private and secure platform for media, messages and money.
  6. Grayscale Litecoin Trust: Crypto for quick low-cost payments.
  7. Grayscale Stellar Lumens Trust: This product connects people, banks and payment systems.
  8. Grayscale XRP Trust: Crypto for efficient worldwide enterprise payments.
  9. Grayscale Zcash Trust: A currency for the new age with enhanced privacy protocols.

Read Also: Leading Reward Tokens That Rule The Crypto Space In 2020

Diversified Products

Grayscale Digital Large Cap Fund: Open-ended and private investment vehicle that offers diversified insight and exposure to the leading digital assets via a cap-weighted market portfolio.

All investment products constitute about 80% of the total digital asset market cap, and they offer a holistic business solution for enthusiasts. Now, why should you invest in Grayscale Investment Vehicles?

Grayscale Investment Products – Why Invest!

Here are some of the benefits of investing in Grayscale’s Investment Products:

Titled Securities: Grayscale Trust Crypto share are titled securities, and are more or less like the common bonds and stock owned by investors. Titled securities are easily transferrable to beneficiaries and are well known by tax and financial advisors.

IRA-Eligible: Grayscale Trust Crypto Shares can be held certain 401ks, IRAs, and other investment and brokerage accounts.

Inherent Security and Storage systems: The underlying assets of each investment product is safeguarded by a robust security protocol that includes cold storage, 2FA, encrypted key shards, usernames and passwords.

Audited Financials: The financial statements of each investment product is audited yearly by Friedman LLP.

Stress-free Investment Model: Individuals and investors seeking to trade cryptos and other digital assets on their own will often have to transact through unregulated or insecure intermediates and unfamiliar exchanges. This puts the digital assets at additional risk as their private keys become susceptible to theft, thereby exposing an investor to total or partial loss.

With Grayscale Trust Crypto, investors do not have to worry about buying, storing or transferring digital assets, instead, Grayscale and each investment product service provider carries the burden without compromising investor’s exposure to the performance of assets. 

Must-Read: How Yield Farming Works On Uniswap

Seasoned Manager & Sponsor

Having considered why to subscribe to Grayscale’s investment vehicles, let’s delve into the “How”.

How to invest in Grayscale Trust Crypto

First, Grayscale Trust Crypto investment placements are only accessible by accredited and verified investors. In this case, an accredited investor will earn over $200K per year or $300K with spousal equivalents, possess a Series 7, 65 or 82 professional certification, and have over $1M in net worth as a standalone investor or with spousal equivalent.

Likewise, entities could also be considered as accredited investors if they have over $5M in liquid assets, or if each member of the entities is an accredited investor.

Secondly, you can either invest in-kind or through cash subscriptions. The amount of investment contributions you can make will fall in the following range:

  1. Less the $25K
  2. Between $25K – $100K
  3. Between $100K – $1M
  4. Between $1M – $5M
  5. Between $5M – $15M
  6. $15M upwards

Conclusion

In summary, to subscribe to Grayscale Trust Crypto, you’ll have to complete an e-form that will require you to answer a few questions to verify your eligibility.

Recommended: How To Make Money In A Crypto Bull Run And The Vital Signs You Must Know

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Author: Gb Obasogie

Committed to a better you

3 thoughts on “How Cryptocurrency Investment Works With Grayscale Trust”

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