In the past six months, Grayscale has launched six crypto trust funds again. Among them, after August 1, $SUI ushered in a wave of gains after Grayscale launched the trust fund. For a time, the view that "Sui is the Solana killer" was rampant.
Currently, Grayscale’s crypto trusts have reached 21 (excluding Bitcoin and Ethereum). How much impact will Grayscale’s launch of trust funds have on these crypto assets? PANews After a summary, Grayscale’s trust funds have a serious impact on token prices. They have a high boosting effect on leading projects in popular market tracks, but have little impact on long-established currencies that have been issued for a long time. At the same time, Grayscale’s previous centralized launch of crypto trusts seems to have coincided with the tail end of the bull market.
Source: PANews
$GDLC: Entering a bear market after launch
Launched: February 1, 2018, assets under management: US$480 million
$GDLC (Grayscale Digital Large Cap Fund) is a basket of digital asset large-cap series products launched by Grayscale. Its current holdings include Bitcoin, Ethereum, $SOL, $XRP, $AVAX and other tokens. The program was launched in February 2018, when the market was experiencing a decline from an all-time high of $19,891 to over $7,000. After Grayscale launched the product, the market entered a long period of consolidation and downward trend. The launch of this product does not seem to have brought much boost to the market.
$ETC: Price surge launched during recovery phase
Launched: April 24, 2017, Assets under management: US$210 million
After Grayscale launched the $ETC product, the price of $ETC has been rising. However, this rise seems to have preceded Grayscale’s trust products, and in April 2017, the entire crypto market was entering a recovery phase. $ETC’s trust product is one of the earliest trust products launched by Grayscale.
$BCH: Drops in Half After Launch
Launched: March 1, 2018, Assets under management: US$120 million
Grayscale Trust Fund does not seem to have much impact on the short-term market price of $BCH. When Grayscale launched $BCH Trust on March 1, 2018, the market price of $BCH was at a high level. After the launch of the product, the price continued to fall. It fell by about 53% in the month.
$LTC: Drops 70% after bullish turn to bearish
Launched: March 1, 2018, Assets under management: US$118 million
Grayscale also chose the time to launch the $LTC trust product just after experiencing a sharp rise, but Grayscale’s trust did not have much impact on the $LTC market. $LTC briefly rebounded around 7% on March 1, 2018, before starting to fall a few days later. It dropped from $200 all the way to $72.
$SOL: Launched after all-time highs
Launched: November 18, 2021, Assets under management: $69.87 million
When Grayscale was launched, $SOL had just passed the previous high of $259 and began to decline. After Grayscale launched the trust product, the market briefly rebounded, but then the market fell all the way and entered a long bear market.
$Zcash: Hits all-time high after launch
Launched: October 24, 2017, Assets under management: $16.26 million
Since the establishment news was launched, the highest increase in four days reached 29.64%. After Grayscale launched the $Zcash trust, the market just entered the second half of the bull market, and the price soared. Bitcoin rose to a maximum of $19,891, and $Zcash also rose all the way, setting a record high price of $799.
Source: PANews
$XLM: Bulls turn into bears and all the way down
Launched: December 06, 2018 Assets under management: $9.4 million
The market has not performed well since the launch and $XLM price is in a downward trend. The market reached its lowest point on December 16, with the price of Bitcoin falling to $3,215 before rebounding to nearly $14,000. But $XLM’s price action is still falling, not getting much of a boost from Grayscale’s trust launch.
$LINK: 124% gain
Launched: February 26, 2021 Assets under management: US$9.39 million
As a trust product launched in the same batch as $MANA, the market performance of $LINK is not as good as $MANA. However, the trust also experienced a 124% increase in the two and a half months after its launch, which also outperformed other mainstream tokens during the same period.
$MANA: Up 543% in January
Launched: February 26, 2021, Assets under management: US$7.64 million
$MANA has experienced significant gains after Grayscale launched its trust product. Grayscale launched the $MANA Trust on February 26, 2021, and over the next month $MANA rose 543%. It became the most eye-catching investment target on the market at that time, but early 2021 was the hot stage of the Metaverse concept, and $MANA was also the only Metaverse product that was launched into trust by Grayscale. Grayscale’s trust management assets currently account for 1.45% of $MANA’s total market value.
$LPT: Skyrocketed nearly 10x after launch
Launched: March 10, 2021, Assets under management: US$6.9 million
Grayscale Trust’s market promotion effect on $LPT is relatively obvious. As a token that has not been launched for a long time, $LPT has not yet been launched on exchanges such as Binance and OKX in March 2021, while Grayscale launched $LPT on March 10. After the LPT trust, the price of $LPT tokens experienced a surge, rising from $4.8 to $40. During the same period, the market was in a high and volatile stage, and $LPT emerged from an independent market.
Source: PANews
$FIL: surged 3 times to hit all-time highs
Launch date: March 15, 2021, assets under management: US$5.32 million
Grayscale’s market boosting effect on $FIL is relatively significant. After Grayscale launched the $FIL trust product on March 15, 2021, the price of $FIL surged by 19% the next day, and even rose by 39% on March 17. , and reached an all-time high of $237 on April 1. However, the market was also in a bullish mood during the same period, with Bitcoin hitting $60,000 for the first time. In addition, FIL's community promotion was also in full swing at that time, and Grayscale's trust products may have more of a strong endorsement to stimulate the market.
$ZEN: Bear market entry all the way down
Launched: August 6, 2018, Assets under management: US$4.9 million
When Grayscale launched the $ZEN Trust, the market was in a volatile and downward stage, so the trust products did not have much impact on the market of $ZEN. After the launch of the $ZEN product, the price of $ZEN continued to fall. , falling from $21 to around $4. However, this decline also followed the trend of the broader market. Grayscale’s $ZEN Trust currently holds 3.86% of $ZEN’s total market capitalization.
$BAT: Up to 273%
Launched: March 1, 2018, Assets under management: US$120 million
On the day when the Grayscale $BAT Trust was launched, $BAT experienced a relatively violent shock. The amplitude reached 26% on that day, and the increase was fixed at 9.19%. However, $BAT then ushered in a strong rise, with the highest increase reaching 273% in 42 days, creating the second highest point so far of 1.54. However, the overall market at that time was in a feverish stage, and it was difficult to judge how much Grayscale’s boost contributed to the rise of $BAT.
$DEFG: ushering in a brief rebound
Launched: July 14, 2021, Assets under management: US$3.34 million
$DEFG is a basket of trust funds launched by Grayscale specifically for the DeFi market. The current holdings include $UNI, $MKR, $AACE, $LDO, $SNX and other five tokens. Among them, $UNI has the highest proportion of positions, accounting for 50%. The product was established on July 14, 2021. When it was established, it was on the eve of the market’s rebound after falling from a high level. Therefore, after the launch of $DEFG, related DeFi tokens ushered in a short-term rebound. However, these rebounds The main driving force may still come from the overall market conditions rather than the boost from Grayscale.
Grayscale Smart Contract Platform Ex-Ethereum Fund: Rebound amid volatile market conditions
Launch time: March 16, 2022, assets under management: US$3.14 million
Grayscale Smart Contract Platform Ex-Ethereum Fund only invests in the native tokens of emerging smart contract platforms. Its current holdings are $SOL, $ADA, $AVAX, and $DOT, of which $SOL accounts for 71.54. Judging from the launch time, March 2022 was the first consolidation stage after the market fell, and the market was in a period of shock. After Grayscale launched the trust at this time, the market ushered in a one-month rebound.
$STX: A short-term rebound after a long decline
Launch time: May 22, 2024, assets under management: US$2.21 million
The price trend of $STX in the past half year has been mainly downward. Even after Grayscale launched the corresponding crypto trust, it only experienced a short rebound, and then the price continued to fall.
$NEAR: The market seems to be unresponsive to Grayscale’s trust
Launch date: May 22, 2024 Assets under management: US$1.96 million
Grayscale launched $NEAR and $STX trust products during the same period, but the crypto market seemed to be no longer enthusiastic about it. After the launch, the price of $NEAR began to decline after a brief rebound of 11%.
$TAO: The market is not paying for it
Launch date: June 10, 2024 Assets under management: US$1.5 million
$TAO is one of the latest crypto trusts launched by Grayscale, but the market does not seem to have much reaction to $TAO. The overall trend still maintains the original direction.
Grayscale Decentralized AI Fund: Taking advantage of the popularity of AI to rebound
Launch time: July 2, 2024, assets under management: US$1.09 million
Grayscale Decentralized AI Fund is Grayscale’s first trust fund that only invests in native tokens of decentralized artificial intelligence protocols. Currently, there are 5 tokens held: $FIL, $NEAR, $RNDR, $LPT, $TAO. Among them, $FIL accounts for the highest 33%, and $NEAR accounts for 30%. The product was launched on July 2, 2024. After the launch of the product, tokens such as $FIL and $NEAR experienced a wave of bottoming out. $FIL rebounded 47% in this wave of market prices, and $NEAR rebounded 61%. $LPT bounces back 55%.
$SUI: Various benefits stimulate short-term surge
Launch time: August 1, 2024, assets under management: US$630,000
$SUI’s price action enjoyed a strong rally in August, rising more than 141% in a week after Grayscale announced the launch of its trust product. However, there are many reasons why the market as a whole is optimistic about $SUI. Grayscale’s trust is only one of them and it is difficult to consider it as the main reason. (Related reading: $SUI rose 141% in a week and was called the "Solana killer". Is the bullish stance tenable?)
$MKR: ushering in a short-term rebound
Launch date: August 8, 2024 Assets under management: US$250,000
After the launch of MakerDAO's trust product, the market just rebounded from the lows, and $MKR also experienced a 14% rise on the day. However, it seems that it has not stepped out of the independent trend.
Grayscale Trust is always launched at the "oxtail"?
Grayscale's greatest impact on the crypto industry was the bull market between 2020 and 2021, when Grayscale significantly increased the asset size of the Bitcoin Trust and introduced a large number of institutional investors to the crypto industry. Other tokens performed differently when Grayscale launched trust products. Star tokens such as $FIL and $MANA were also leading projects in each track. Their prices rose most significantly after Grayscale launched trust products. . For older tokens such as $LTC, $ETC, and $BCH, which have larger market capitalization and have been launched for a longer time, there has not been much impact.
In addition, Grayscale’s launch of encrypted trust products is concentrated in three years: 2018, 2021, and 2024. Compared with the overall market, Grayscale’s previous centralized launch of encrypted trust products was mostly close to the high point of the bull market or at the end of the bull market. Half way. 2018 was concentrated from February to August, when the market had just turned from bull to bear and experienced a sharp decline. From February to July in 2021, the market experienced high fluctuations and declines, but it began to rise again and create new highs in August. However, the reason for this phenomenon does not seem to be because Grayscale’s judgment of the market is wrong. It is more likely because Grayscale needs to confirm the market popularity and maturity of a token before launching related trust products, so the launch time is very long. Just at the end of a bull market.
The period from May to August 2024 is another time when Grayscale will launch crypto trusts intensively. I wonder whether this wave of Grayscale crypto trusts can break the previous "ox tail" cycle.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: "PANews"
Original author: Frank, PANews
