Digital currency investment group Grayscale, the company behind the Bitcoin Investment Trust, announced the launch of Stellar Lumens Trust, a “single-asset investment product” which exposes investors to lumens (XLM), the native asset of the Stellar network.
The newly-launched Stellar Lumens Trust is Grayscale’s ninth-single asset product. Others include its flagship Bitcoin product, as well as funds for Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), XRP, and Zcash (ZEC).
Stellar is a platform that connects financial institutions, payment systems, and people around the world. The platform is designed to provide low-cost financial services to fight poverty and income inequality and foster individual growth. Founded by Jed McCaleb, the Stellar project has notably attracted the interest of IBM, which is building a cross-border payment rail on top of the network.
Speaking to Fortune, managing director Michael Sonnenshein said the latest addition had arisen from investor demand to gain exposure to XLM’s price movements.
“I think the theory is a sound one. An American bank may be keeping large amounts of currencies in foreign banks, and to be able to bring those balances of foreign currencies onto a balance sheet as working capital is valuable,” he said. “Financial institutions won’t be required to hold balances all over the place. This will improve efficiency and shore up balance sheets for other uses.”
Grayscale, which is operating under the Digital Currency Group umbrella, “will continue to provide investors access to established blockchain projects with substantial traction and resources,” he said.
Additionally, the company announced changes to the names of its single-asset products.
2/ Second, we have renamed all of our single-asset Trusts. The public quotation symbols remain $GBTC for Grayscale Bitcoin Trust and $ETCG for Grayscale Ethereum Classic Trust. For more info, check out our press release: https://t.co/UQTVDZUPnD pic.twitter.com/ksAPHpK1fG
— Grayscale (@GrayscaleInvest) January 17, 2019
Grayscale’s announcement comes on the heels of it reassuring existing customers that an investment vehicle for Ethereum Classic was not in any danger after the recent 51 percent attack on the network.
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