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.
Senior BitConnect Promotor Arrested by Indian Authorities
A promoter of the controversial cryptocurrency platform BitConnect was arrested on August 19, according to a local news outlet in India.
Former BitConnect India head Divyesh Darji was arrested at I
Softbank, Baidu Lead $3 Million Funding for Ex-Googler's Crypto Startup
A team led by a former Google staffer is taking aim at the online advertising giant.
Called Atlas Protocol, the startup believes that the data accumulating on blockchains today can be used to bette
Crypto Exchanges Join Winklevoss Backed Self-Regulatory Group
A group of cryptocurrency exchanges has joined up with Gemini founders Cameron and Tyler Winklevoss to launch a new industry-focused self-regulatory organization (SRO).
First proposed in March, the
Bakkt CEO: Crypto Trading Platform Won't Support Margin Trading
Two weeks after the Intercontinental Exchange (ICE) introduced Bakkt, a new digital assets platform, the latter's CEO has set out to explain what the service will offer consumers.
Bakkt chief execu
Blockchain Firm to Raise $24 Billion for Electric Bus Upgrades in China
Blockchain and AI technology company Seven Stars Cloud Group has scored a major deal to help raise $24 billion to fund large-scale electric bus upgrades for China's biggest full-service operator.
SEC Faces Thursday Deadline for ProShares Bitcoin ETF Decision
Less than a month after delaying a decision on a bitcoin-based exchange-traded fund (ETF), the U.S. Securities and Exchange Commission (SEC) is poised to approve or disapprove another pair of proposed
Blockchain Enters 'Trough of Disillusionment' on Gartner's Hype Scale
Interest in blockchain technology is waning, research firm Gartner said in its latest "Hype Cycle for Emerging Technologies" report.
Gartner included blockchain, along with four other emerging tech
District Judge Forms Blockchain Law Study Group in South Korea
A group of judges, lawmakers and industry experts in South Korea are forming a new group aimed to discuss legal issues surrounding blockchain technology.
Called the Blockchain Law Society, the grou