- Grayscale launched a closed-end MakerDAO Trust, expanding its digital asset investment products.
- This is Grayscale’s third single-asset trust, announced within a week, following Bittensor’s TAO and Sui token trusts.
- The trust only allows accredited investors exposure to MakerDAO’s governance token, which is tied to various yield-generating assets within the MakerDAO ecosystem.
The world’s largest crypto manager, Grayscale, launched a closed-end MakerDAO Trust designed to expand its digital asset investment products offering.
This marks Grayscale’s third single-asset trust announcement within a week, following funds for Bittensor’s TAO cryptocurrency and the Layer 1 network Sui token.
Related: Sui and Bittensor Rally Up to 31% Amid New Grayscale Trust Listing
Demand Racks Up for Crypto Exposure
According to the press release, the new trust will allow qualified investors and institutions to gain exposure to MakerDAO’s (MKR) governance token, which provides exposure to several yield-generating assets and products, including stablecoins, real-world assets (RWAs), and on-chain credit through MakerDAO’s ecosystem.
The launch of the Grayscale MakerDAO Trust allows investors to experience the growth of the entire MakerDAO ecosystem, aiming to remove DeFi’s dependency on traditional finance infrastructure by providing a permissionless, decentralized, and open stablecoin system.
Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research. Note that the fund is not an exchange-traded product. As mentioned, it’s a closed-end fund with no direct withdrawals. This could lead to the fund’s shares trading at a premium or discount compared to the underlying asset’s value, leading to price deviations.
Explained in simple terms (somewhat), the fund’s share price on secondary markets is determined by supply and demand rather than directly reflecting the underlying asset’s value.
This can cause the share price to trade at a premium or discount compared to the actual asset, leading to potential price deviations.
More Assets in The Pipeline?
Dave Lavalle, Global Head of ETFs at Grayscale, said the industry could see more single crypto-asset products and some index-based and diversified products. However, investors’ sentiment seems mixed.
Related: Grayscale Predicts Expansion in Crypto ETF Market with New Single-Asset and Diversified Index Products
For example, Brazil approved a Solana ETF as interest in the coin is notably high within the country. In the US, things seem divided. Asset managers like VanEck and 21Shares have filed for spot Solana ETFs with the Securities and Exchange Commission (SEC).
But BlackRock has not noted any interest from their clients in any asset except Bitcoin and Ethereum.
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