Grayscale Adds Stellar as Latest Cryptocurrency Investment Trust
The company serves “single-asset investment products that provide exposure to” Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Ripple (XRP) and Zcash (ZEC), along with Stellar.
Speaking to Fortune, managing director Michael Sonnenshein said the latest addition had arisen from investor demand to gain exposure to XLM’s price movements.
“I think the theory is a sound one,” he said about Stellar’s business proposition for bridging crypto to fiat currency conversions, continuing:
“An American bank may be keeping large amounts of currencies in foreign banks, and to be able to bring those balances of foreign currencies onto a balance sheet as working capital is valuable. Financial institutions won’t be required to hold balances all over the place. This will improve efficiency and shore up balance sheets for other uses.”
Grayscale meanwhile faced a mixed year in 2018. By December, after Bitcoin had fallen to 15-month lows of $3,130, the company’s Bitcoin Trust became worth less than $1 billion for the first time during the year.
Research by cryptocurrency industry newsletter Diar at the time added that Grayscale’s holdings amounted to just over 1 percent of the total number of bitcoins in circulation.
Stellar is currently up 1.22 percent on the day, trading at $0.10.