Grayscale Investments Announce Stellar Lumens (XLM) Trust
Stellar Lumens (XLM) is back at the spot number 6 after it managed to get passed Bitcoin Cash (BCH) several months ago by market cap, that way becoming the 4th-largest cryptocurrency.
XLM is still suppressed to declines dictated by the frequent bear market trends, however, as of the most recent case of events, Stellar Lumens joined the list of investment trusts that Grayscale Investments have to offer.
Grayscale Investments is a company focused on investing and advising in the sector of digital assets and has just announced on January 17th that the investors will have more exposure to the price movement of XLM in the market.
Grayscale Investments Supports Stellar Lumens (XLM) by Announcing XLM Investment Trust
Grayscale Investments is a well-established and successful digital asset giant, focused on providing market insights for investors alongside with offering investment services for institutional investors.
Additionally, Grayscale aims to establish their company as one of the top digital investment firms, which is why they are offering familiar and transparent investment tools and products that is set to help the investors join the rising digital economy where money is moved as fast, cheap and effective as information does on the internet.
The company presented Stellar Lumens Trust in their official post on Twitter published on January 17th, sharing their excitement for adding XLM to their portfolio and stating that XLM movements in the market are to gain more exposure among institutional investors.
Stellar Lumens (XLM) thus became the 9th digital asset to be added to the portfolio of Grayscale Investments while the company is already supporting investments and price movement of Bitcoin, Litecoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP, Zcash and Horizen.
Michael Sossenhein, Managing Director at Grayscale Investments, claims that the institutional investors have never been more interested in cryptocurrencies, adding that over 70% of investments that came in the third quarter of 2018 were brought by the institutional investors, which is the period before the bear trends arrived.
Sossenhein further added regarding the latest trust announcement, that Stellar Lumens has been added in accordance with the overall demand among investors.
Stellar Lumens is described by the company as “a platform that connects banks, payment systems and people” while Grayscale now offers the support for XLM investing without the need for buying and storing XLM units.
As described on the official page of Stellar Lumens Trust hosted on Grayscale Investments official website, Digital Asset Custody Company will be holding private keys to Stellar Lumens accounts addressed to investors, also providing protection of these assets.
Additionally, Grayscale Investments will provide legal support for Stellar Lumens Trust.
Stellar (XLM) Competing Against XRP?
Many are implying that Stellar Lumens poses a direct competition to Ripple’s XRP.
A part of this conviction goes to the fact that the founder of Stellar Lumens, Jed McCaleb, was also working on Ripple’s XRP as one of the co-founders, which is why cryptocurrency enthusiasts claim that XLM and XRP are very similar.
The similarity of the two assets is tied to their targeted sector – financial institutions and banking – however, while Ripple company is interested in finding a way into banks and financial institutions with remittance products based on blockchain, Stellar Lumens is using XLM to enable self-banking in developing areas where banks and financial services are not accessible.
Moreover, both digital assets are supported by Grayscale Investments, while XRP was the first of the two to gain the exposure to investors.
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