It is almost undeniable that Grayscale has laid a good foundation for this (2020-2021) cryptocurrency bull market, which is closely related to its distribution mechanism.
Before understanding its distribution mechanism, we should first understand what the Grayscale Fund is.
Grayscale fund refers to a series of financial products managed by Grayscale Investment, LLC, including Grayscale Bitcoin Trust (GBTC or Grayscale Trust for short).
Grayscale Investment Trust was established in the United States in 2013 by Digital Currency Group. DCG is one of the most active and influential crypto capitals in the world, and its investment covers all segments of blockchain industry.
At present, the regulatory environment of cryptocurrency is relatively complex, with imperfect infrastructure and high risks. Therefore, institutional investors in most traditional financial markets cannot directly invest in cryptocurrencies through exchanges. The demand of institutions for "safe" investment in cryptocurrencies gave birth to a "compliance" platform–-Grayscale, which meets the traditional regulatory requirements.
Grayscale's Irrevocable Issuance Mechanism
Grayscale Trust accepts investors' cash or bitcoin to build a bitcoin-based asset portfolio, and issues trust shares to investors to prove that investors hold the rights and interests of the asset group. When investors don't want to hold the interest any more, they can transfer the trust stock through the secondary market or redeem bitcoin from Grayscale Trust by the trust stock (but for regulatory reasons, Grayscale Trust does not provide redemption operation at present). In this way, investors can get the income effect similar to investing in Bitcoin by investing in Grayscale Trust. Grayscale Investment, as the initiator of the trust, is responsible for the daily management of the trust, the quarterly report, the selection and supervision of the intermediary service agencies of the trust.
Rong Token Trust is creating a stronger crypto fund brand
First of all, Rong Token Trust (RongToken.com) is different from Grayscale Fund in that it contains more kinds of cryptocurrency funds. Grayscale fund mainly focuses on cryptocurrencies with large market capitalization. Therefore, it often misses cryptocurrencies with small market capitalization and large increase in the bull market, such as BNB, UNI, Sushi and so on, which have increased dozens of times in the bull market. Rong Token is aware of this point. In the asset package issued this time, in addition to the conventional mainstream currencies such as BTC and ETH, Rong Token is also equipped with crypto assets with small market capitalization and great potential such as UNI, XLM, ADA ADA,CDS. Under the effective hedge protection of mainstream currency, Rong Token can't miss the increase of currency with small market cap in bull market, and more scientific matching can bring more objective benefits.
Rong Token Trust, in order to cater to the regulatory rules of the United States, implements the same irrevocable rule as Grayscale Fund, that is, after purchasing through the primary market, it can only trade through the secondary market to obtain profits, which is equivalent to locking the assets contained in the asset package for a certain period of time, but does not affect the profits. When the relevant laws and regulations of SEC are perfected, people will see that Grayscale Fund and Rong Token will open share redemption together.
In addition, it is understood that unlike Grayscale Fund, Rong Token is the world premiere. In order to quickly open up the global market and establish a strong brand effect, its circulation is only 10,000 shares, and each share is given an additional CDS asset package, which can double the asset appreciation. According to its official website, the global agent application has been opened.
Will Rong Token Trust, which is improved on the basis of Grayscale Fund of cryptocurrency giant, surpass the scale of Grayscale Fund in the future? Please wait and see!
