Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
Grayscale Investment could be making a move to the decentralised finance (DeFi) space after filing new trust in the Delaware corporate registry.
As it stands, Grayscale is the leading cryptocurrency asset manager in the world with monumental stakes in Bitcoin and with a hefty cryptocurrency trust across different tokens, such as Ethereum, Bitcoin Cash and Litecoin.
Grayscale has filed new trusts for Aave, Polkadot and Cosmos earlier in the week. At the same time, the firm also registered trusts for Cardano and Monero.
Laying down the foundations
Grayscale has acknowledged that these filings are not necessary any indication that it will be launching a product anytime soon for the five newly registered cryptocurrencies However, it offered that it might be a future plan and that registering the cryptocurrencies simply is laying down the foundation for a possible launch.
As the company said:
“Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market.”
Altcoins performance attracting the investment firm
The rationale behind Grayscale’s move has not been confirmed. It’s possible that it is simply opening up its cryptocurrency horizons owing to the sound performance the five tokens have enjoyed in the past few months. With the cryptocurrency market as a whole experiencing positive sentiment backed by Bitcoin’s bull run, some altcoins have outperformed others. The tokens in question could have attracted Grayscale’s attention as a result.
Looking at the past year, Aave boasted a record 483% growth in the last three months of 2020. With a focus on DeFi, a market which has been booming, the cryptocurrency has done well. Cosmos also held its own in the market, showing a nearly 490% increase to take the token to 25th spot in terms of market cap. Polkadot boasts an even higher growth, looking at nearly 540% since August and now. Newly launched, the project has done exceptionally well to establish itself in the market and industry, offering hot competition to Ethereum.