Grayscale Investments has recently announced that they are launching the Grayscale Stellar Lumens Trust. Grayscale Investments is a New York-based company that operates the Bitcoin Investment Trust. Stellar Lumens (XLM) is one of the largest companies in the crypto market. The information was released by the company a few hours ago.
Grayscale Stellar Lumens Trust
Grayscale is currently offering exposure to Stellar Lumens through a traditional investment vehicle. The company has more than $825 million in assets under management. This shows that the company is a recognized participant in the market.
The new investment tool aims at offering exposure to a new digital asset known as Stellar Lumens. Indeed Stellar is a cross-border payments platform that allows parties to exchange money in a very easy way using the XLM cryptocurrency.
The official announcement reads as follows:
“Sponsored by Grayscale Investments, LLC, Grayscale Stellar Lumens Trust is a private and open-ended trust that provides titled, auditable XLM exposure through a traditional investment vehicle. Modelled after Grayscale Bitcoin Trust, the Trust was created for investors looking for XLM exposure.”
The advantages of owning Grayscale Stellar Lumens Trust is that it provides built-in security and storage, it is sponsored by an experienced manager, it is a security and it as been IRA-Eligible. At the moment, the trust is only available to accredited investors with a minimum investment required of $25,000. The fee is 2.5% annually and Grayscale has $0.4 million assets under management.
In a similar way as other single currency vehicles, this Trust is structured as a Delaware Grantor Trust. It will only be holding Stellar Lumens’ assets. The Trust uses the XLMX reference rate from TradeBlock. This shows that companies in the market are moving forward and offering new services to investors.
In this way, Grayscale offers the tenth product to investors in the crypto market. Other funds include cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Ethereum Classic (ETC), Horizen (ZEN) and XRP, among others.
XLM is currently the 7th largest digital currency with a market capitalisation of $2.04 billion. Each coin can be purchased for $0.106 according to CoinMarketCap. Stellar Lumens was created by Jed McCaleb, that has also been involved in other projects such as Mt. Gox, or Ripple. At the moment, McCaleb is the CTO and co-founder of Stellar.org and it leads the technical development.
