Crypto is evolving now that the long Anticipated spot Bitcoin and ethereum ETFs are out in the open the market is Buzzing with the possibilities of what Comes next and many investors are Turning their attention to one of the Largest ETF managers out there grayscale Great scale scale that's because Grayscale has been expanding its Offering of altcoin trusts and this has Everyone wondering if they could turn Into spot ET FS today we'll be looking At the different altcoin trusts that Grayscale offers and telling you what This could all mean for the market stay Tuned now before we dive in here's the Deal I'm not a financial adviser I'm Just keeping it real nothing in this Video is advice to take we're simply Here to educate so sit back relax and Enjoy the show but when it comes to your Money you're on your own with that out Of the way it's time to make sale as we Set course for the land Of grayscale now in case you're Unfamiliar with grayscale here's Everything you need to know grayscale Investments is a digital asset Management company founded in 2013 it's A subsidiary of crypto giant digital Currency group or dcg and very recently Grayscale had a change of CEO as Michael Sunstein stepped down from the role to Be replaced by Peter minsberg a trafi
Veteran from Goldman Sachs who's also Worked at Black Rock Oppenheimer and Invesco quite the resume now aside from Having one of the 11 approved spot Bitcoin ETFs launched back in January And one of the eight spot ethereum ETFs Launched in July grayscale is also known For having a variety of crypto Investment trusts including for various Altcoins we'll come back to these Altcoin trusts in a moment first though We need to answer the pressing question What is the difference between an Investment trust and an ETF well ETFs Work by issuing their own shares that Are created and destroyed based on the Demand for the underlying Assets in real Time that way the price action of ETFs Mimics the price action of the assets Themselves as closely as possible which Is perfect for investors looking to Trade riskier assets like Cryptocurrencies without having direct Exposure similarly trusts also work by Issuing their own shares the difference Is that these Shares are cre Creed and Destroyed periodically not in real time Like ETFs the result is that there are Often large price discrepancies between Trust shares and the assets underlying Them these discounts and premiums have Made trusts suboptimal relative to ETFs The thing is that for a long time Investors looking to get exposure to
Crypto in a safe and regulated way Didn't have any alternatives it was Trust or bust that's because the SEC ref Refused to approve a spot Bitcoin ETF For over a decade despite dozens of Attempts the straw that finally broke The camels back was grayscale suing the SEC for refusing to convert its Bitcoin Trust to an ETF a case which grayscale Won the result was that the SEC was Forced to approve all spot Bitcoin ETF Applications making it possible for Investors to access BTC in a safe and Regulated manner without the huge Discounts or premiums that come with Trusts and by the way I uh trust you're Enjoying the video so far if so smash That like button subscribe to the Channel and ping that notification Bell To ensure you keep learning about crypto Hold up a second there guy sorry to Interrupt folks but I just wanted to Very quickly tell you about the coin Bureau deals page now this is the place Where we have put together some of the Very best deals and Promos in all of Crypto so you can think things like Exchange signup bonuses trading fee Discounts and money off of Hardware Wallets and much much more besides so if You want to check that out coin.com Deals is the place to go or you can just Use the link in the description of this Video down below thanks very much and
Now back to you guy now since the spot Bitcoin ETFs were approved there have Been further developments in case you Forgot eight spot ethereum ETFs were Launched in July what's interesting is That the initial approvals occurred way Back in May under rather dubious Circumstances for reference it was Expected that the SEC would reject the Spot ethereum ETF applications for Multiple reasons namely the fact that The regulator was reportedly probing Ethereum's ecosystem for evidence that Eth was an unregistered security then in A sudden change of heart the SEC Approved the spot ethereum ETFs and it's Generally believed that this happened For political reasons if this is indeed The case then it's extremely significant Because it means that politics is Theoretically the only thing standing in The way of additional altcoin ETFs this Has many investors excited about the Possibility that other altcoins could Get spot ETFs under the right Circumstances to put things into Perspective grayscale has trusts for Over a dozen altcoins and Counting the First altcoin trusts were for ethereum Classics Etc and zcash is zec with both Trusts being launched back in 2017 in 2018 grayscale added trusts for Bitcoin Cash's bch litecoins LTC and Stellar's Xlm it also launched the gdlc that same
Year grayscale's large cap trust which Currently consists of around 73% BTC 20% Eth 4% Soul 2% xrp and 5% avax and by The way if you're wondering why we say Currently consists it's simply because Grayscale rebalances these trusts on a Quarterly basis even going so far as to Remove some cryptos entirely in favor of Others anyo grayscale added five more Altcoin trusts in 2021 along with a Trust for defi projects the altcoins in Question were salana Soul chain links Link decentral lands Manor file coins Phill live piers lpt and the brave Browsers bat token meanwhile Grace Scale's DFG defi trust currently Consists of around 50% uni 20% mkr 15% Arve 10% ldo and 4% snx then in 20123 Grayscale created the dynamic income Private trust with a focus on staked Cryptos as the name suggests this is Only available to select investors at The time of shooting and the trust Consists of 34% in coinbase staked eth 28% Soul 25% near and 13% others of Course following the Bitcoin ETF success At the start of the year grayscale has Continued to expand its offerings in July it launched another trust this time For decentralized AI which currently Consists of around 33% Phill 31% near 24% R&R 8% lpt and 3% to and in August Grayscale also created investment trusts For bit andurs too as well as sui and
More recently makad Dows mkr and as a Fun little side note that last one was Announced while we were making this Video so who knows there could be even More by the time you're watching this Crypto never sleeps after all so now That we're caught up with grayscale's Altcoin trusts this begs the question of Just how much interest they've garnered The short answer appears to be lots That's simply because almost every Single one of these trusts is trading at A premium with many being in the triple Digits in percentage terms but why is This important well let's dive deeper Into what a premium and indeed a Discount actually means as noted earlier A premium means that the value of the Trust is more than the value of the Underlying asset logically a discount Means the opposite and it's important to Note though that grayscale or any other Asset manager for that matter doesn't Set the premiums for these trusts rather The premium is determined by the supply And demand for the trust So in simple terms if a trust is trading At a premium it means there's more Demand for the crypto in question Relative to the supply of shares trust Holders are willing to sell so if a Crypto trust is trading at a 30% premium Then it means there's lots of demand for The crypto in question likewise if a
Trust trades at a discount it means There's much less demand for the crypto In question relative to the supply of Shares that trust holders are willing to Buy thus if a crypto trust is trading at A 30% discount then it means there's Very little demand for the crypto in Question obviously premiums and Discounts on grayscales trusts have Fluctuated significantly over the years Take a second to consider that in December 2022 grayscale's Bitcoin trust Was trading at almost a 50% discount Signaling very low interest if you Compare this with btc's chart you'll see This was at the same time that btc's Price had bottomed at around 16k down From its previous all-time high of Around 69k at the opposite extreme you Have grayscales Litecoin trust which was Trading at a whopping 1,00% premium in March 2021 right before LTC surged Around 150% to its all-time high another Instance of this is grayscale salana Trust which traded at an 869 premium in November last year before Soul went on an absolute tear you get The point now today almost everyone of Grayscale's altcoin trusts is trading at A crazy premium with only two of these Premiums being less than 100% by far the Highest premium is on grayscale's Filecoin trust at a jawdropping 783 premium with the salana trust coming
In hot second at 663 per. on the lower End of the premium scale are grayscales Litecoin and zcash trusts which still Have premiums of 73% and 60% Respectively this underscores just how Much altcoin demand there is coming from Institutions one of the only exceptions Is grayscale's ethereum classic trust Which is trading at a 32% discount at The time of shooting representing low Interest in ETC the Silver Lining is That it could also be a great entry Point for any institutional investors Who think Etc is undervalued but what's Perhaps more interesting is the Selection of private altcoin trusts that Grayscale has put together in recent Months for institutional investors these Include trusts for near and bensa both Of which are AI plays which makes sense When you consider the recently launched Decentralized AI trust there's also a Selection of so-called eth Killers with Smart contract cryptos such as SOI and Stacks the latter being a smart contract Layer 2 on bitcoin and this aligns with A grayscale trust launched in 2022 Literally called smart contract Platforms excluding ethereum although These could have also been chosen as Infrastructure plays which could explain Why makad da was chosen for the latest Trust now we couldn't actually find the Data on the premiums or discounts on
Grayscales private trusts but we're Willing to bet that they tell a similar Story to what's seen across the board on Its other altcoin trusts and if any of You know where to find this data we Would love to know too so please do us a Favor and let us know in the comments Nevertheless this highlights that Institutions are paying attention to the Hottest narratives and it would appear That Ai and smart contract cryptos are The ones to watch if you want to follow The so-called smart Money so then what does all this mean For the crypto Market well we'll start With the obvious which is that every Crypto trust being launched is bullish For the underlying asset involved this Was evidenced most recently by makad da Which rallied by 7% on the day that the News of a designated grayscale trust Broke if you're a follower of our Telegram Channel you'll have seen that We recently covered this in our daily Rally report and you can keep up to date With which crypto has rallied the most In real time by becoming a member of our Free coin Bureau Insider telegram Channel the link to that is in the Description now as you'll have seen the Majority of altcoin trusts are trading At insane premiums highlighting massive Interest from investors outside of the Crypto space now while this could
Foreshadow some ungodly gains on the Horizon there is a caveat that's because If the premium on a crypto trust is too High this could actually stall Investment because people simply won't Want to pay that premium never mind the Fact that trusts don't directly impact The price of the cryptos involved due to The delays in issuance and Redemption of Course the caveat to that caveat is that These investors could then turn to Buying crypto assets directly instead of Allocating to grayscales expensive Trusts but well let's not get ahead of Ourselves there are going to need to be Some serious regulatory changes before That can happen the key takeaway though Is that the more interest there is in Altcoin trusts the more bullish it will Be for the broader altcoin Market this Is especially true when you consider That recently a grayscale executive said That they expect that crypto ETFs will Extend into other asset types according To Dave Laval grayscale's global head of ETFs quote we're going to see a number Of more single asset products and then Also certainly some index-based and Diversified products in other words Watch this space now obviously an Altcoin index ETF would be bullish AF as It would bring in a bucket load of Liquidity to the altcoins within that ETF which would be absolute Rocket Fuel
Assuming physical backing of course but More importantly than the prospect of Any potential mad gains these altcoin Trusts help to give cryptocurrencies More legitimacy just as we saw with the Spot Bitcoin ETFs Bitcoin has now become A mainstream investment option and the Launch of the spot ethereum ETFs showed That crypto is more than just Bitcoin if More of grayscale's altcoin trusts are Uplisted to spot ETFs this will put not Just the top two cryptos but the entire Crypto industry on the path towards Mainstream adoption and remember folks That is what it's all about Okay that is just about it for today's Video so if you enjoyed it help us out By hitting those like And subscribe Buttons and turn on those notifications To help you catch our next release if You know anyone who'd enjoy this content Too take a second to help them by Sharing this video also don't forget to Check out the coin Bureau deals page Where we have some of the best deals in All of crypto you'll find sign up Bonuses of up to $100,000 and trading Fee discounts of up to 70% we also have Exclusive deals on Hardware wallets for You to keep it all stored safely too Thank you all so much for watching and We'll see you in the next one until then This is Guy bidding you goodbye [Music]
