Grayscale Launches Chainlink Trust amidst LINK Surge

As a seasoned crypto investor with a knack for spotting promising opportunities and a penchant for avoiding unnecessary hassle, I find the launch of Grayscale Chainlink Trust to be a welcome development. The trust’s passive investment strategy in LINK makes it an attractive option for institutional investors who might otherwise shy away from the complexities of directly holding or managing cryptocurrencies.

Grayscale Investments unveils the “Grayscale Chainlink Trust,” a new investment vehicle that allows institutional investors to invest in Chainlink (LINK) using a secure, regulatory-compliant method.

By passively entrusting your investment into LINK, you’re relieved from the responsibilities associated with directly owning and managing the cryptocurrency yourself.

The Grayscale Chainlink Trust follows the CoinDesk Chainlink Price Index (LNX), which gives a price in USD for LINK’s current price. This index brings together real-time prices from different trading platforms. 

Furthermore, it’s worth noting that the Trust can be found as “GLNK” on OTC Markets Group. This makes it possible for investors to acquire shares via regular brokerage accounts. As stated by Grayscale, this investment tool is designed to mirror the market price of LINK, while accounting for fees and expenses. However, shares are often bought at a premium or discount relative to the value of the assets held within the Trust.

The Trust was first set up on February 26th, 2021. It started trading on OTC Markets on May 19th, 2022. Grayscale imposes a management fee of 2.5% for this product, without any additional distribution or performance charges. Notably, the shares do not provide regular dividends, reflecting the growing demand for financial products tied to LINK.

Yesterday’s announcement followed a significant investment by a project backed by Donald Trump, World Liberty Financial Initiative (WLFI), who purchased over 41,000 LINK tokens for $1 million. Immediately after WLFI’s purchase, the value of LINK surged by 20%, reaching a trading price of $28.40.

Large-scale crypto investors were drawn to the WLFI investment, resulting in one investor buying approximately 176,000 LINK tokens for roughly $5 million, with an average purchase price of around $28.18 per token.

Currently, the market capitalization of the token is at an impressive $17 billion, marking a 6% increase in its trading volume, which now stands at a substantial $3.1 billion.

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2024-12-14 00:36