Grayscale wants to make leading DeFi projects tradable on the stock exchange
Eight DeFi cryptocurrencies could soon become listed financial products.
DeFi cryptocurrencies tradable on exchange? Influential crypto asset management firm Grayscale could soon make this a reality.
According to a recent press release, the asset management firm, which has already listed several Bitcoin Billionaire cryptocurrencies as investment funds, most notably the bitcoin (BTC)-based Grayscale Bitcoin Trust, plans to list more crypto financial products. Of the 23 cryptocurrencies under consideration, 8 are in turn from the Decentralised Financial Services (DeFi) sector.
Thus, emerging DeFi projects such as Aave, Compound (COMP), MakerDAO (MKR), Reserve Rights (RSR), SushiSwap (SUSHI), Synthetix Network Token (SNX), Uniswap (UNI) and Yearn.finance (YFI) are on the list of potential financial products alongside established blockchain networks such as Polkadot (DOT), Cosmos (ATOM) and Cardano (ADA). Further evidence that „the great reassessment“ is now in full swing in the crypto industry.
„We are excited to expand our product offering to better meet the needs of our investors,“ as Grayscale CEO Michael Sonnenshein writes in the accompanying press release. He adds: „The crypto industry is constantly evolving, which is why we strive to seek out bold, interesting and innovative investment opportunities that meet our investors‘ demand for broad exposure to this burgeoning asset class.“
Turned into listed financial products
To this end, Grayscale explains that factors such as „safe custody and legal requirements“ also play an important role in the selection of crypto projects to be turned into listed financial products. For DeFi projects in particular, however, this could present obstacles.
In the past, Grayscale has already been criticised for the selection of crypto projects it represents in its financial products, including the Bitcoin offshoot Bitcoin Cash (BCH) and the controversial Ripple cryptocurrency XRP. Grayscale had already submitted applications last month for new investment funds based on the cryptocurrencies now unveiled.
The selection decisions made by the asset management company have a major impact, as crypto-financial products such as the Grayscale Bitcoin Trust and the Grayscale Ethereum Trust are important vehicles for both institutional and retail investors. Grayscale products are particularly interesting for large investors, as they usually prefer traditional investment channels. The price differences between Grayscale’s crypto investment products and the associated cryptocurrencies are therefore often important indicators for the market.