Grayscale Investments announced yesterday they are launching four more new funds for ethereum, bitcoin cash, litecoin and ripple investing.
“Our team is committed to bridging the gap between the global investment community and the digital currency asset class,” Michael Sonnenshein, Managing Director at Grayscale, said in a statement before adding:
“We remain focused on product creation and will continue to launch more single-asset and diversified products to provide exposure where investors are looking for it.”
The investment funds are limited to accredited investors only. That is rich people with a net worth over one million dollars or an income of $200,000 for the past three years.
Which means that share purchases are locked for one year and there is no redemption program. The value of the shares therefore could be substantially higher or substantially lower than the underlying asset.
Nonetheless, Grayscale Investments has attracted $2.1 billion in assets under management, they say, with the funds being one of the first of its kind for the listed cryptocurrencies.
Coinbase also announced today they are launching an index fund, but that too is limited to accredited investors to comply with the discriminatory Securities Act 1933.
An easy way for stock portfolio investors to diversify with crypto is still lacking, although there are the bitcoin and ethereum ETNs traded on Stockholm’s Nasdaq.
That’s because US’s Securities and Exchanges Commission (SEC) has been quite hostile towards this space, denying the market new crypto products in US, so forcing companies to get around it by limiting it to rich individuals only.
But it does remain a bit of a mystery as to why London’s stock market does not have a crypto ETF considering FCA has been much more accommodating.
It could be that no one thought to apply, with the efforts perhaps focused on US stock exchanges, but now that the SEC has effectively closed the door, London might once more be calling.