Which stage is the market currently in? A simple judgment can be made from Grayscale's holdings. From 2022 to 2023, Grayscale has never increased its holdings of any token. But this year is different, with significant increases in holdings of tokens like SUI, STX, NEAR, TAO, MKR, etc. It shows that Grayscale is very optimistic about the upcoming bull market, indicating that the market might already be in a bull market. When Grayscale significantly reduces its holdings, it will indicate that this bull market is nearing its end.
As one of the top crypto asset management companies globally, every trust fund launched by Grayscale receives significant attention from the crypto market. For the market, trust funds provide legitimacy and recognition for specific crypto assets.
As a long-established institution in the field of crypto asset management, Grayscale has been very active recently. Whenever Grayscale announces a new trust fund for a certain asset, the market often reacts differently. Some may interpret this launch as a signal that the asset's market is nearing saturation, or at least that there is limited upside in the cryptocurrency sector. On the other hand, this also serves as a mark of recognition from major players in the crypto field, potentially bringing legitimacy to the asset, attracting institutional investors, and at least enhancing media attention.
Grayscale has recently accelerated the pace of launching new investment products, indicating their firm belief that we are currently in a crypto bull market.
As a low-profile giant in the industry, investors continue to closely monitor Grayscale's investment trends to gauge their views on the future direction of the industry. What assets has Grayscale invested in during this cycle?
Grayscale has two major comprehensive funds.
1. Grayscale Decentralized AI Fund includes FIL, NEAR, RNDR, LPT, TAO.
Grayscale points out that there are concerns that the future will be dominated by centralized AI, while crypto technology is expected to create a fairer and more transparent ecosystem. Grayscale believes that although the combination of crypto and AI is still in its early stages, the prospects are vast. By harnessing the power of crypto, we can build a fairer, more transparent, and trustworthy AI ecosystem.
2. Grayscale Dynamic Yield Fund aims to maximize returns by leveraging the increasing staking rewards of tokens like SOL, ETH, and NEAR. The fund maximizes yield by strategically allocating capital to tokens with attractive staking yields.
Grayscale has three main trusts and other trusts.
1. Grayscale Sui Trust: Sui has a unique blockchain design, prioritizing scalability and user experience. It allows for parallel processing and can handle multiple transactions simultaneously. Sui's competitive advantage lies in its specially developed programming language, Sui Move, which simplifies the development and execution of smart contracts. With increasing demand in the crypto field for blockchain space and faster execution speeds, Grayscale believes Sui opens a new door, ushering in a new era of decentralized applications that were previously unachievable due to existing blockchain infrastructure limitations.
2. Grayscale NEAR Trust: NEAR is a shining star in the crypto space, standing out due to its strategic focus on AI and chain abstraction. NEAR has a grand vision for user-owned AI, but its active developer community, growing user base, and ample funding enable it to achieve this goal. As global acceptance of AI continues to rise, NEAR is likely to become the platform of choice for developers and users.
3. Grayscale Stacks Trust: Stacks is Grayscale's bet on the Bitcoin layer 2 space. Stacks addresses Bitcoin's scalability and functionality challenges by building a Layer 2 solution that supports smart contracts on top of Bitcoin. This approach allows developers to create various applications on the Bitcoin blockchain. As the Bitcoin ecosystem continues to evolve and more DeFi activities come in, the demand for scalability and cost reduction will become more urgent, and Stacks provides a solution to this issue.
Grayscale also has other trusts, such as the DAO Trust, MKR Trust, Bittensor Trust, etc. Grayscale's bullish attitude towards the crypto market is very evident in its recent product releases.
Currently, Grayscale's crypto trusts include 21 trusts, along with Bitcoin spot ETF and Ethereum spot ETF. In summary, the impact of Grayscale's trust fund launches on token prices varies; they have a strong boosting effect on leading projects in popular market segments, while their impact on long-established tokens is minimal.
Grayscale's most significant impact on the crypto sector was during the bull market between 2020 and 2021, known as the Grayscale bull market. At that time, Grayscale was the largest Wall Street institutional investor in the cryptocurrency market. This year, the largest investor in the cryptocurrency market is BlackRock, but these institutional investors primarily invest in Bitcoin spot ETF and Ethereum spot ETF, which play a stabilizing role in the cryptocurrency market, explaining why there have been few significant fluctuations in the crypto market since the beginning of this year. Grayscale still plays a crucial role in the crypto market.
Grayscale's launch of crypto trust products has been concentrated in the years 2018, 2021, and 2024. Compared to the overall market, Grayscale's previous launches of crypto trusts often occurred near the peak of a bull market or in the latter half of a bull market. This phenomenon is due to Grayscale needing to confirm the market heat and maturity of a token before launching related trust products, thus the timing of the launches coincides with the end of the bull market.
From May to August 2024, Grayscale is expected to launch a concentration of crypto trusts, while the current phase is the best ambush stage for the start of the 2025 bull market. It is highly likely that new leading cryptocurrencies will emerge from Grayscale's crypto trusts, leading the cryptocurrency market into a major bull market.
