Investors all over the world such as Leonardo González Dellán are currently eyeing cryptocurrencies but not all of them are willing to handle the hassle that comes with it can opt for a better option – trusts. The two most viable options are GBTC or Bitcoin Investment Trust and the ETCG or Ethereum Classic Investment Trust. Grayscale Investments is the digital currency expert company behind these trusts. These are intended to be traded very similar to stocks while monitoring the cryptocurrency it is linked with.
According to Michael Sonnenshein, the managing director of Grayscale, trusts make it possible to handle something that is complicated by making it simple and transparent. Barron’s however believe that the risks are still present and it is something that investors should be prepared with. It was early of last month when the Ethereum Classic Investment Trust, which keeps track of Ethereum’s price, was made available through over the counter buyers and it has already increased by 36 per cent. Bitcoin Investment Trust, on the other hand, monitors the bitcoins price and it was launched to the public back in 2015. Since it was opened to the public, it has already increased by 137 per cent.
Aside from the obvious benefit which is receiving a high gain, investors who tried their hands with the trusts was able to note that familiarity has proven to become a benefit. Many of them are not willing to create a digital wallet which they have to protect at all costs thus they turned to Grayscale which made it possible for them to enter the world of cryptocurrency without having to navigate the whole process on their own.
There is also transparency despite the digital currencies being out of the scrutiny of a governing body. This is because Grayscale is under the SEC which they must the rules and regulations whatever may happen with the cryptocurrencies theyare handling.
With advantages, there are risks as proven by investors like Leonardo González Dellán because it is a part of any business investment. The main risk with Grayscale is that it is trading in a value that is more their net asset.