Grayscale Investments, a subsidiary of the Digital Currency Group (DCG), is planning to open a LINK Trust. The digital asset manager has $27.2 billion in assets under management (AUM).
The Grayscale Chainlink Trust is a Delaware Domestic Statutory Trust filed last year on Dec. 18.
Grayscale already offers several investment products such as the Grayscale Bitcoin Trust. The firm has opened trust for assets such as Bitcoin Cash, Ethereum, Ethereum Classic, Horizon, Litecoin, Stellar Lumens, and Zcash.
The Grayscale Bitcoin Trust is a cryptocurrency investment product that individual investors can buy and sell on their own. A trust of this kind offers investors the opportunity to invest in cryptocurrencies without owning the digital asset.
Some institutional investors want to avoid the hassles that come with owning and storing cryptocurrencies such as the risk of hacks and the effort required to keep the private keys safe.
A Grayscale Chainlink Trust could be huge for LINK
A Grayscale Chainlink Trust could drive the price of the LINK token to new highs. In the past few days, Grayscale has been on an aggressive buying spree of digital assets.
Grayscale bought 16,244 bitcoins valued at more than $600 million a few days ago and now holds a total of 630,000 BTC worth around $23 billion.
The firm has purchased around 26,000 BTC in the past week alone. Apart from bitcoin, Grayscale purchased more than 12,000 Bitcoin Cash (BCH).
Grayscale has a huge appetite for cryptocurrencies and if this extends to Chainlink, it has the potential to trigger a hot-streak for the digital asset.
Chainlink is the ninth-largest cryptocurrency with a market capitalization of just over $8 billion. It is trading at $19.83, down more than 4% in the last 24 hours. However, it has enjoyed gains of more than 18% in the last 24 hours, CoinMarketCap data shows.
LINK is the most valuable DeFi token, followed by Wrapped Bitcoin (WBTC) with less than half the market cap of Chainlink.