Grayscale Expands Institutional Crypto Offerings with NEAR and STX Trusts

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  <li>Grayscale has expanded its offerings by launching two new investment trusts.</li>
  <li>These trusts, named Grayscale Near (NEAR) Trust and Grayscale Stacks (STX) Trust, aim to provide institutional investors with diversified exposure to cryptocurrencies.</li>
  <li>Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, highlighted the company’s commitment to launching new products that enable investors to access “emerging segments” of the crypto ecosystem.</li>
</ul>
<p><strong>Discover Grayscale's latest crypto investment trusts and their potential impact on the blockchain ecosystem.</strong></p>
<h2><strong>Grayscale Targets Blockchain Scalability</strong></h2>
<p>Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, highlighted the company’s commitment to launching new products that enable investors to access “emerging segments” of the crypto ecosystem. According to Thursday’s announcement, by addressing blockchain’s scalability challenges, Near Trust and Stacks Trust are expected to drive greater adoption of cryptocurrencies and contribute to the advancement of the entire crypto ecosystem.</p>
<h3><strong>Investment Opportunities and Regulatory Challenges</strong></h3>
<p>Both trusts are now available for daily subscription to eligible individual and institutional accredited investors. Similar to Grayscale’s existing single-asset investment trusts, such as the Grayscale Bitcoin Trust (GBTC), the Near Trust and Stacks Trust are among the first investment products to focus exclusively on the tokens underlying the Near Protocol and Stacks Bitcoin Layer 2 (L2). Grayscale is seeking to list the shares of these new products on a secondary market, but the asset manager points out that success is not guaranteed due to various factors, including regulatory considerations from bodies such as the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).</p>
<h2><strong>Outflows Amidst Growing Demand For Bitcoin ETFs</strong></h2>
<p>In addition to launching the new investment trusts, Grayscale recently announced the appointment of Peter Mintzberg as its new CEO, effective August 15, 2024, succeeding Michael Sonnenshein. Grayscale has played a significant role in the US spot ETF landscape, witnessing continuous outflows since trading began in January. However, Bitcoin spot ETFs in the US experienced a net inflow of $153.9 million on May 22, marking an eight-day growth streak. In contrast, GBTC saw outflows for the first time in over a week, losing $16.09 million and restarting its outflow streak.</p>
<h3><strong>Market Performance and Investor Risks</strong></h3>
<p>As the asset manager introduces the Near Trust and Stacks Trust, institutional investors now have additional options for diversified crypto exposure. However, investors should be aware of the risks associated with investing in such products, including regulatory uncertainties and potential deviations in share value. At the time of this report, STX is trading at $1.99, indicating a decrease in value of more than 4% over the past 24 hours. This price decline aligns with a broader correction observed in Bitcoin and other major cryptocurrencies following a significant surge in the initial trading days of the week. Similarly, NEAR is currently trading at $7.56, reflecting a 3.4% decrease compared to yesterday’s price.</p>
<h3><strong>Conclusion</strong></h3>
<p>Grayscale's launch of the Near Trust and Stacks Trust marks a significant step in providing institutional investors with diversified exposure to emerging segments of the crypto ecosystem. While these new investment products offer promising opportunities, potential investors should remain cautious of the inherent risks and regulatory challenges. As the market continues to evolve, Grayscale's strategic initiatives will likely play a pivotal role in shaping the future landscape of cryptocurrency investments.</p>