Grayscale Investments launched its newest crypto product today: the Grayscale Dogecoin Trust. It’s a major step for the token that started as a joke and ended up in Wall Street’s crosshairs.
According to the company’s press release, the trust is designed to give big-money investors exposure to DOGE without touching the token directly, and Grayscale is already planning to flip it into an exchange-traded fund (ETF) once the SEC goes officially pro-crypto after the confirmation of SEC chair nominee Paul Atkins in February.
The trust officially launched today and is open to accredited investors who meet the financial requirements under U.S. law.
Why Grayscale is betting big on DOGE
Originally forked from Litecoin (which itself came from Bitcoin), DOGE is now the largest meme coin in the world, and a favorite for the richest man on earth, the controversial Mr. Elon Musk.
Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, is calling it more than just a meme coin. “Dogecoin has matured into a potentially powerful tool for promoting financial accessibility. We believe, as a faster, cheaper, and more scalable derivative of Bitcoin, Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system,” she said.
According to Sharif-Askary, the Dogecoin Trust is speculative and illiquid, meaning investors can’t just cash out whenever they want. Shares could trade at massive discounts or premiums compared to the underlying value of the Dogecoin it holds. Grayscale knows this and so it warned investors upfront in the press release.
Grayscale plans to push for the trust’s shares to be listed on secondary markets and eventually convert them into an ETF. But there’s no guarantee that will happen. The SEC has been blocking its crypto ETFs for years. Even Grayscale’s attempt to turn its flagship Bitcoin Trust into an ETF is still stuck in limbo, so you can see why it’s skeptical.
Private placement securities come with all sorts of legal restrictions too. They’re limited to accredited investors—those with high incomes or a net worth over $1 million (excluding their primary home). Most retail investors won’t be able to touch this product directly, though they could eventually buy shares if the trust makes it to the OTC markets. But even then, liquidity could be an issue.
Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? – Find Out Here
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed