The digital currency investing company, Grayscale announced on its Twitter account that the company has successfully completed the launch of the Grayscale Stellar Lumens Trust.
1/ We are excited to announce two big developments! First, today marks the launch of Grayscale Stellar Lumens Trust! Investors can now gain exposure to the price movement of XLM through a traditional investment vehicle. For more info go to https://t.co/izJooCsKwS
— Grayscale (@GrayscaleInvest) January 17, 2019
Grayscale posted on its social media forum account about two big announcements one of which was the news of the introduction of its latest fund, the Grayscale Stellar Lumens Trust. The investing company also pointed out the opportunity for investors through the launch of this new fund which is to acquire all the required information regarding the cryptocurrency, XLM through this medium.
With the introduction of this new fund by Grayscale, the company now operates in a total of nine different cryptocurrencies and that too by changing the name of its products to trusts for a distinct image. The products/services that the company provides exposure to include the following cryptocurrencies; Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Ripple (XRP), Zcash (ZEC) and now, Stellar’s Lumens (XLM).
The Managing Director of Grayscale, Michael Sonnenshein had a few things to say about the company’s decision to add Lumens (XLM) to its crypto portfolio in an interview, stating:
I think the theory is a sound one. An American bank may be keeping large amounts of currencies in foreign banks, and to be able to bring those balances of foreign currencies onto a balance sheet as working capital is valuable.
Mr. Sonnenshein has backed the company’s operations and its approach towards the launch of this new fund due to the fact that how it can serve as a medium between different countries to float cash and that investors can acquire detailed information on different crypto assets. He continued:
Financial institutions won’t be required to hold balances all over the place. This will improve efficiency and shore up balance sheets for other uses.
Stellar’s idea of carrying out cross-border transactions using crypto assets has taken off power from the hands of the financial institutions to some extent and other protocols are also trying to imitate this practice to help investors perform transnational financial activities using various digital currencies.
The authorization of these processes for protocols such as Stellar and Ripple is still under examination and a final response is awaited however, this new practice looks to gain great attention in the world of trade and the value of the cryptocurrencies is also expected to increase with the introduction of these new practices, according to the beliefs of many investors and rightly so.
The Managing Director of Grayscale also believes that the previous reports claiming that cryptocurrencies are struggling in the industry are false and the inability of organizations to hit the Wall Street is only because of the fact that those companies are working to get their systems right and are preparing themselves for the bigger picture rather than focusing on the short term gain. Therefore, Mr. Sonnenshein is confident that the crypto market will definitely reach its maximum potential with time and the companies operating in the crypto assets realize that too and are functioning accordingly.
Moreover, the last year was a year of mixed emotions for the investing company as the fall of Bitcoin resulted in the company’s Bitcoin Trust less than the worth of $1 billion for the first time in 2018. While other reports also suggesting that the investing company held just over 1% of the total bitcoin circulation in the market, meaning that with the fall in the value of the cryptocurrency, the company’s trust’s value also decreased.
Hence, the addition of this new crypto asset in the company’s portfolio will result in benefit for the investors as it will provide more opportunities to investors to carry their transnational trading processes using crypto assets and help them receive detailed information on these crypto assets.