To further diversify its crypto investment portfolio, asset manager and ETF issuer Grayscale has unveiled the launch of the Grayscale MakerDAO Trust. This latest addition to Grayscale’s product suite allows investors to achieve exposure to MKR, the utility and governance token underpinning the Ethereum-based MakerDAO ecosystem.
Grayscale Expands Crypto Portfolio
MakerDAO is an autonomous organization operating a decentralized finance (DeFi) protocol, providing users access to a permissionless, open stablecoin system and various other on-chain financial services.
In response to Tuesday’s announcement by the firm, through the Grayscale MakerDAO Trust, investors can now take part in the expansion and development of the protocol’s MKR ecosystem.
Related Reading
“As demand for crypto exposure continues to grow, Grayscale is committed to expanding our suite of products and providing progressive investment opportunities,” said Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research.
“The launch of the Grayscale MakerDAO Trust allows investors to experience the expansion of the whole MakerDAO ecosystem, aiming to remove DeFi’s dependency on traditional finance infrastructure by providing a permissionless, decentralized, and open stablecoin system,” Sharif-Askary also stated.
The brand new trust functions similarly to Grayscale’s other single-asset investment vehicles, with the fund solely invested in MKR tokens. The trust is now open for each day subscription by eligible individual and institutional accredited investors, providing them a convenient strategy to gain exposure to the MakerDAO protocol.
This announcement comes on the heels of Grayscale’s recent launches of the Grayscale Bittensor Trust, dedicated to the TAO token supporting the Bittensor Protocol, and the Grayscale Sui Trust, focused on the SUI token underpinning the Sui Layer 1 blockchain.
MKR Price Motion
Grayscale’s news sparked a spike within the MKR token, which hit an 8-month low of $1.7 on August 5 amid the broader market crash and global economic uncertainties that led to an increased sell-off.
MKR is trading at $2.10, up nearly 6% in the previous couple of hours, coupled with a 16% increase in trading volume within the 24-hour time-frame, amounting to $124 million, indicating investor interest within the token’s prospects.
Related Reading
MKR must consolidate above the $2.06 level to further capitalize on this latest surge, because it has acted as a resistance wall for the token over the past few days before Tuesday’s bullish news on the MKR/USDT each day chart. This is able to be key for MKR’s future advances and the potential to surpass its next resistance barrier at $2.16.
Nevertheless, if there’s a resurgence of demand and buying pressure for the token and the broader market, which may contribute to MKR’s 10% surge last week, it might position MakerDAO’s native token to tackle its next resistance at $2.31, $2.42 and $2.73 on its strategy to reclaiming the $3 mark.
The each day chart shows MKR’s price surge on Tuesday. Source: MKRUSDT on TradingView.com
Featured image from DALL-E, chart from TradingView.com