The firm behind the tradable GBTC launches four new ways to get exposure to bitcoin and other digital currencies
Investing in cryptocurrencies is complicated. Four new trusts make it easier, says crypto investor Michael Sonnenshein.
"Digital currencies are not like stocks and bonds and all the other things that you buy," Sonnenshein, managing director at Grayscale Investments, a digital currency investment firm, said Monday on CNBC's "Fast Money." "There's certain technological prowess that people need to have in order to handle them, store them securely, et cetera."
Recognizing that investors want exposure to digital currencies, Grayscale launched four new crypto funds: Bitcoin Cash Investment Trust, Ethereum Investment Trust, Litecoin Investment Trust and XRP Investment Trust.
Grayscale is the creator of the popular Bitcoin Investment Trust (GBTC), a way to invest in and trade the price moves of bitcoin without directly investing in the digital currency.
The new trusts, Sonnenshein said, are "something that people can really wrap their heads around."
So far, in the week since the products were introduced, the demand has been "fantastic," said Sonnenshein, whose company has approximately $2.1 billion in assets under management across eight different products.
"There's a lot of investors who want to be able to place targeted exposure in a fund," he said. "And, there are also investors who want that more-diversified exposure, like the digital large-cap fund offers."
"We're continuing to break records all the time," Sonnenshein said.
He said each fund operates as a trust on a rules-based methodology, where tokens are evaluated each quarter to see if they have fallen into the 70 percent target of the overall market cap in digital currencies.
"Of course there are other qualifiers and disqualifiers: There's got to be a liquid market. We have to have a custodial solution that we feel really is secure and robust and allows us to continue to operationally support the product," Sonnenshein said.
Each fund has a one-year holding period before it can be resold without restrictions. Only U.S. qualified accredited investors can put money into funds. Sonnenshein said Grayscale plans to roll out more new products later this year.
Quebec Pushes Hydropower Utility to Halt New Bitcoin Mines
The Canadian province of Quebec has temporarily put a halt to the development of new cryptocurrency mining operations.
The region - known for its cheap hydropower - has been an attractive destinati
Steve Seagal-Backed 'Bitcoiin' ICO Hit with Regulator Warning
The Securities Division of the Tennessee Department of Commerce and Insurance (TDCI) is warning residents about the Steven Seagal-backed "Bitcoiin" project.
Citing New Jersey's cease-and-desist ord
Ireland's Finance Department Plans Blockchain Working Group
Ireland's Department of Finance has proposed the creation of a new blockchain working group to help create cohesive regulation across government agencies.
Revealed in a new report, titled "Virtual
'Fake News': Russian Official Reportedly Denies Involvement with Petro
The Russian government is pushing back against reports that it helped Venezuela launch its controversial "petro" cryptocurrency.
In public remarks Friday, the deputy director of the Information and
US Government Watchdog: Regulations Are Hobbling DLT Innovation
The complexity of U.S. financial regulations is holding back distributed ledger technology (DLT) startups, the U.S. Government Accountability Office (GAO) says.
The GAO's finding, in a report publi
IRS Reminds US Taxpayers to Report Crypto Earnings
The Internal Revenue Service has reminded U.S. taxpayers to include any cryptocurrency income on their annual tax forms.
In a release published Friday, the IRS noted that cryptocurrency transaction
Smart Contracts Now Recognized Under Tennessee Law
The governor of Tennessee has signed a bill that legally recognizes blockchain data under state law.
Governor Bill Haslam signed the measure on Thursday, public records show, capping a months-long
Nevada digs bitcoin, DC loves Obama: Most popular purchases in every state, according to app Earny
Ever wonder what residents in your neighbor states are shopping for? The most popular purchases by state, it turns out, vary greatly. Earny, an app that gets you money back on things you buy based