Grayscale, A Cryptocurrency Investment Firm, Debuts Stellar Lumens Dedicated Fund

stellar lumens

During the cryptocurrency winter, Stellar, just like every other blockchain, suffered some setbacks. Even if the price of the XLM token fell significantly against the USD, the platform development efforts didn’t slow down. Recently, Grayscale, A cryptocurrency investment firm, and Digital Currency Group announced the launch of a new platform specifically for the Stellar Lumens token. The fund named Grayscale Stellar Lumens Trust, was designed particularly to give investors price movement exposure for the XLM token. Currently, Stellar XLM is the sixth largest cryptocurrency per market capitalization.

Stellar Lumens To Revolutionize The Financial Payment System

Grayscale offered single asset and diversified asset funds before now. The single asset funds were made for Bitcoin, Ethereum, Ethereum Classic, XRP, LTC and Zcash. The diversified assets will also included the above tokens. The announcement from @GrayscaleInvest was as follows:“We are happy to announce two major developments on our platform. The first development is that investors can now use Grayscale Stellar Lumens Trust. They can gain exposure to XLM price movement’s through a typical investment vehicle. More information can be found on the website.”

Stellar (XLM) Price Today – XLM / USD

According to Michael Sonnenshein, the managing director of Grayscale, the fund was created to meet with the demand of investors. He said that he is bullish about the real world uses of Stellar. He sees Stellar as the blockchain that will bridge the gap between virtual and traditional money corridors. In his words:“I believe the theory is sound. If an American bank keeps a lot of currencies in foreign banks and is able to bring those balances from different currencies into one balance sheet, it would consider the technology priceless. Financial institutions will not need to hold balances for a long time. This is certainly going to improve bookkeeping efficiency and reserve room in balance sheets for other things.”

Stellar Lumens blockchain promises to change the game in traditional financial institutions just like Ripple and its xRapid technology. XRP will serve as a bridge currency just like XLM. Currently, XRP is way ahead of XLM per adoption in the traditional financial sector. This doesn’t mean Stellar isn’t making progress.
Sonnenshein said that the launch of this Stellar fund is one of the many signs that prove the cryptocurrency market isn’t going anywhere anytime soon. It also shows that Grayscale is receiving a lot of net investment flow. This is because there is a growing interest in cryptocurrencies from professional investors. Finally, he said that this move shows that there are many cryptocurrency based products that have the required regulatory safeguards that institutional investors need to enter the market.

Stellar (XLM) Price Analysis

At the time of writing, XLM was trading at $0.107024. This shows that it is up by 0.76% against the USD and up by 0.02% against BTC. The trading volume over a 24 hour period is $115,773,616 and the market capitalization is $2,047,274,102. The news about the launch of the fund seems to have given the price a boost since the other top cryptocurrencies are currently in red.

Do you think XLM is going to take over from XRP as they chase a common goal of changing the traditional financial system?

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.


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