Grayscale establishes a MakerDAO fund to provide select investors with access to MKR.
Grayscale is the world’s largest crypto fund manager, with an asset under management of over $25 billion and a selection of over 20 funds, including recently converted Bitcoin and Ethereum spot ETFs. Nevertheless, the organization is not complacent in its expansion efforts, despite its success.
The firm has recently developed a fund to provide investors with exposure to MKR, the governance token of MakerDAO, a prominent decentralized lending platform and the entity responsible for DAI, the third largest crypto stablecoin and the largest decentralized stablecoin. This expansion of its suite of offerings is the most recent example. Immediately following the announcement of Trusts for SUI and Bittensor (TAO) on August 7, the firm has launched a new fund.
Grayscale has once again broadened its product line. Grayscale announced the establishment of a MakerDAO Trust on Tuesday, August 13, to provide investors with exposure to MKR.
Grayscale specified that the fund is accessible to accredited institutional investors and eligible individual investors. Simultaneously, the MakerDAO Trust would function as a closed-ended fund, similar to other single-asset Grayscale funds.
The MakerDAO Trust is a closed-ended fund that does not permit direct withdrawals. Therefore, the only viable method of exiting the fund is through share sales. Therefore, the value of the fund’s shares may differ from that of MKR, transacting at a premium when demand is high and at a discount when demand is low.
Grayscale Head of Product and Research Rayhaneh Sharif Askary commented on the development, indicating that investors would be able to capitalize on the anticipated growth of MakerDAO.
The Grayscale fund is being introduced at a time when the project is undergoing a restructuring in accordance with the Endgame manifesto of MakerDAO founder Rune Christensen. The manifesto’s objective is to enhance the project’s resilience and resistance to censorship by diversifying DAI’s support and dividing it into smaller units known as SubDAOs. MakerDAO would eventually transition to a new blockchain and introduce enhanced versions of the MKR and DAI tokens, as outlined in the roadmap.
At the time of writing, CoinMarketCap data indicated that MKR has traded at $2,130, approximately 7% higher than it was in the previous 24 hours, in response to Grayscale’s fund announcement.
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