Bitcoin
Grayscale launches new investment funds with BTC Layer 2 exposure
Asset Manager Shades of gray introduced two new investment funds, providing accredited investors with access to layer 2 Bitcoin networks such as Stacks and NEAR Protocol. Additionally, these new offerings join Grayscale’s extensive range of crypto-focused trusts. Existing funds include those dedicated to Solana (SOL), Chainlink (LINK) and others.
Grayscale Offers Exposure to Bitcoin Layer 2 Projects
Rayhaneh Sharif-Askary, head of product and research at Grayscale, emphasized the company’s commitment to meeting investor demand for diversified exposure to crypto assets. “With continued demand for diversified exposure to crypto assets, Grayscale remains committed to launching new products that allow investors to access emerging and evolving parts of the crypto ecosystem,” she said, according to a Decrypt report.
Stacks, a Bitcoin Layer 2 network, adds smart contract functionality to Bitcoin. Furthermore, it facilitates the development of decentralized financial applications on the platform. Furthermore, the network has gained traction recently due to the growing popularity of the Bitcoin Ordinals and Runes protocols, especially after the release of its Nakamoto update last month.
In a statement, Kyle Ellicott, investor relations leader at Stacks, highlighted the growing institutional interest. She stated: “Within the Stacks ecosystem, we are witnessing a robust increase in demand from institutions across the board. The greater Bitcoin ecosystem is seeing similar demand as the large gap continues to close around unlocking Bitcoin’s liquidity and making it more usable.”
Introduced in 2020, the NEAR protocol is a high-speed blockchain designed for decentralized cloud computing. Recently, the project announced the creation of a new research and development laboratory focused on artificial intelligence (AI).
Grayscale describes its private placements as the initial stage of its product lifecycle. Furthermore, the ultimate goal of the asset manager is to convert assets into exchange-traded funds (ETFs).
Currently, the Grayscale Bitcoin Trust (GBTC) it is the only product that has achieved ETF status, following its approval among other Spot Bitcoin ETFs in January. Additionally, the organization is also seeking SEC approval to convert its Ethereum Trust into an ETF.
Read too: BlackRock Poised to Surpass Grayscale Amid Eight Days of Bitcoin ETF Inflows
Changes to the Ethereum ETF application
On Wednesday, May 22, Grayscale filed an updated 19b-4 filing for its proposal Spot Ethereum ETF application. Bloomberg Senior ETF Analyst James Seyffart issued this update on X, noting that the firm initially amended the order on May 21.
The crypto community is watching closely as the United States Securities and Exchange Commission (SEC) is expected to approve Spot Ethereum ETF applications today. The rapid change in the SEC’s approach suggests this could be a historic moment with these approvals. Furthermore, Grayscale meticulously avoids any potential errors in its application.
In the updated document, Grayscale removed the “staking” clause from its Spot Ethereum ETF proposals. This demonstrates the company’s careful consideration of SEC guidelines, as the agency reportedly plans to leverage the momentum of ETH and staked ETH.
Additionally, the focus on Form 19b-4 is crucial as it is the first step the SEC will approve in the process leading to the actual release. Additionally, frequent application updates may reflect ongoing communication between the SEC and ETF applicants, incorporating feedback from the regulator.
Read too: Grayscale eliminates staking from its Spot Ethereum ETF plan