Do you have soup to drink with Grayscale? How strong is the institutional effect when investing in these 14 coins with a return rate of over 200%?

In recent times, with the soaring prices of $SUI and $ZEN, the “Grayscale Effect” has reappeared, and Grayscale Holdings has also become one of the market’s investment indicators. So, how did the selected encryption Tokens by Grayscale perform in terms of investment returns? This article from PANews reviews the market performance of 14 Tokens involved in the last bull market cycle, covered by Grayscale’s encryption trust funds, for the period from March 2021 to March 2022.

Average return exceeds 200%, significant impact of market cycles

During the last bull market, Grayscale launched 14 encryption currency trust products through OTC markets, DeFi funds DEFG, and GSCPxE funds, which were gradually opened over a period of about a year. In terms of the time of product launch, Grayscale started introducing relevant Token funds in the early stage of the bull market and accelerated the layout frequency in the middle and later stages.

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In terms of investment return, the average highest increase in price of these 14 tokens after Grayscale’s launch is 204.8%. Among them, the increases of $LPT, $LDO, and $BAT are particularly prominent, reaching 1,497.1%, 292.6%, and 239.8% respectively. In contrast, the increases of $SOL, $DOT, and $SNX are much lower than the average level.

Looking at the length of time required for returns on investment, the average period for 14 tokens to reach a new high is 84.4 days. $BAT, $MANA, and $LPT require longer periods, all exceeding 250 days, but their returns are relatively higher. $SOL, $FIL, $AVAX, and $DOT reached new highs in a shorter period of time, but their gains were relatively limited, as this period is in the market adjustment phase after Bitcoin’s new high. This phenomenon not only indicates that, under normal circumstances, the longer the investment period during a bull market, the more advantageous the holding return rate is, but also related to the time of product launch. In the past, the rising cycle of the plate showed that most of the public chains were targets of the first wave of the bull market, and these projects launched by Grayscale mostly achieved good gains in the early stage, resulting in limited upward space in the later stage.

However, this difference is also influenced to a certain extent by the changes in the market cycle. Specifically, during the early stages of the bull market in the first half of 2021, the average increase in the Token fund launched by Grayscale was 446.8%; during the mid-term bull market from April to November 2021, the increase dropped to 85.4%; and during the market correction period in March 2022, the increase of the Tokens launched was only 40.3%. It can be seen that the investment return of Grayscale is significantly affected by the fluctuation of the market cycle, showing obvious cyclical characteristics.

From this perspective, although Grayscale’s Token currency trust products have provided considerable returns during the bull market, their performance is significantly affected by market volatility, so investors should fully consider the overall market trend when making investment decisions.

Participate in multiple Token layouts and expand investment product range.

Recently, several Tokens have shown strong price performance, and Grayscale’s layout may play an important role in driving market trends.

For example, XRP, which recently broke through its multi-year high. In September of this year, Grayscale announced the re-launch of the first US XRP Trust Fund, which is now officially open to qualified investors. It is worth noting that as early as January 2021, Grayscale removed the XRP Trust Fund and liquidated its holdings due to Ripple’s legal disputes. This change is also interpreted by the market as paving the way for a potential XRP spot ETF, and the price of XRP has continued to rise in the months following, indicating a positive response to Grayscale’s move.

The price of SUI has been performing very well in the past few months. Several months ago, Grayscale updated its investment strategy and announced the Top 20 Tokens expected to rise significantly by the end of 2024, including the addition of $SUI and $TAO among 6 new tokens. At the same time, Grayscale also started its investment layout for $SUI, announcing in August this year the launch of Grayscale Sui Trust, which is now officially open to qualified investors.

Another Token worth paying attention to is $ZEN, whose price has also risen sharply recently, with an increase of about 215% in the past 30 days. After increasing its holdings of $ZEN Tokens recently, Grayscale also announced that it has submitted the Grayscale Horizen Trust ($ZEN) 8-K form to the SEC, allowing investors to obtain exposure to $ZEN Tokens in the form of securities.

In addition to the above items, Grayscale also provides legitimacy and recognition for more encryption assets. On December 24, Grayscale announced the private placement of 22 encryption currency trust products for qualified investors, including mainstream tokens such as $AAVE, $AVAX, $LINK, $SOL, $XRP, as well as fund products for sub-sectors such as DeFi, AI, etc. Investors can subscribe according to the Net Asset Value (NAV). The products opened this time cover the Grayscale Decentralized AI Fund, Grayscale Decentralized Finance Fund, and single-asset trusts of emerging protocols such as Bittensor, Lido DAO, Optimism, etc.

In addition, Grayscale is further accelerating its business expansion and seeking more professional talents to cope with the increasingly complex market demand. Earlier this month, Grayscale announced the initiation of recruitment for positions including: Tax Director, ETF Product Senior Manager, Digital Asset Trader, Investment Portfolio Manager, Product Manager, and Engineering Supervisor.

Although the specific impact of these measures on currency price changes has not yet fully manifested, grayscale will further drive encryption assets into the mainstream market by providing investors with more diversified and professional investment products.

Disclaimer: The market is risky, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are applicable to their specific situation. Invest at your own risk.

This article is authorized to be reproduced from: “PANews”

Original author: Nancy, PANews

“Follow Grayscale for Soup? Investing in These 14 Tokens Yields Returns of Over 200%. How Strong is the Institutional Effect?” This article was first published on “encryption city”.