The new trusts provide exposure to the governance tokens of Lido DAO (LDO) and Optimism (OP), targeting accredited investors seeking indirect participation in Ethereum’s ecosystem.
By Chimamanda U. Martha
Edited by Marco T. Lanz
Updated
3 mins read
Grayscale Investments, one of the largest asset management firms in the crypto industry, has expanded its portfolio of digital asset investment products. The company has launched two new trusts, offering institutional investors access to Lido DAO (LDO) governance tokens and the Optimism protocol (OP).
According to a press release issued on Thursday, the new offerings, named Grayscale® Lido DAO Trust and Grayscale® Optimism Trust, are now open for subscription. These trusts are available exclusively to eligible individual and corporate investors who meet specific financial requirements, such as a net worth of at least $1 million or a household income of $300,000 annually.
Before the launch of the new products, Grayscale had already integrated the assets underpinning the two trusts, LDO and OP, into its Financials Crypto Sector, a portfolio that includes cryptocurrencies designed to facilitate financial transactions and services.
The new trusts are tailored for investors who prefer indirect exposure to these tokens due to the inherent volatility associated with the crypto market. The trusts aim to mirror the price movements of the underlying assets, offering a simplified investment vehicle similar to Grayscale’s existing single-asset trusts.
Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, said the new offerings will help advance the Ethereum ecosystem.
“Grayscale Lido DAO Trust and Grayscale Optimism Trust provide investors with exposure to protocols helping to increase Ethereum’s efficiency, security, scalability, and adoption within the broader DeFi ecosystem – playing a critical role in the Ethereum story,” she said.
Both Lido and Optimism are Ethereum-based projects, but they serve distinct functions within the blockchain ecosystem. Optimism operates as a layer-2 solution designed to alleviate congestion on the Ethereum network by offering faster, cheaper, and more efficient transactions.
In contrast, Lido DAO focuses on liquid staking solutions, allowing users to stake Ethereum while maintaining liquidity. This helps secure the Ethereum network and supports the expansion of decentralized finance (DeFi) on the platform.
Meanwhile, the launch of these trusts follows Grayscale’s recent announcement regarding the reopening of private placement of its 19 other trusts, including those for Ripple’s XRP, Solana SOL $252.1 24h volatility: 3.1% Market cap: $122.40 B Vol. 24h: $11.07 B , Stellar XLM $0.43 24h volatility: 1.1% Market cap: $13.06 B Vol. 24h: $400.23 M , Avalanche AVAX $35.76 24h volatility: 4.1% Market cap: $14.70 B Vol. 24h: $412.10 M , AAVE, Chainlink LINK $25.56 24h volatility: 0.0% Market cap: $16.28 B Vol. 24h: $1.17 B , Filecoin FIL $5.07 24h volatility: 0.9% Market cap: $3.15 B Vol. 24h: $209.57 M , NEAR, Bittensor TAO $385.6 24h volatility: 6.1% Market cap: $3.16 B Vol. 24h: $192.52 M , and Zcash ZEC $48.92 24h volatility: 1.5% Market cap: $774.38 M Vol. 24h: $145.82 M .
On November 19, the company revealed that it invited accredited investors to subscribe to these private placements at net asset value (NAV), enabling them to hold and eventually sell their shares on the secondary market.
In August, Grayscale further expanded its offerings by introducing the Avalanche Trust, targeting accredited investors interested in Avalanche’s native token, AVAX. This addition demonstrated the company’s continued commitment to providing diversified crypto investment products for institutional clients.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.