To further diversify its cryptocurrency investment portfolio, asset manager and ETF issuer Grayscale exposed Grayscale MakerDAO Trust launches. This latest addition to the Grayscale product suite allows investors to gain exposure to MKR, the utility and governance token that underpins the Ethereum-based MakerDAO ecosystem.
Grayscale Expands Crypto Portfolio
MakerDAO is an autonomous organization operating a decentralized finance (DeFi) protocol, providing users access to permissionless, open stablecoin systems and various other financial services on the blockchain.
According to the company’s announcement on Tuesday, through the Grayscale MakerDAO Trust, investors can now participate in the development of the protocol’s MKR ecosystem.
“As demand for cryptocurrencies continues to grow, Grayscale is committed to expanding its product offerings and providing innovative investment opportunities,” said Rayhaneh Sharif-Askary, Chief Product and Research Officer at Grayscale.
“The launch of the Grayscale MakerDAO Trust allows investors to experience the growth of the entire MakerDAO ecosystem, which aims to eliminate DeFi’s dependence on traditional financial infrastructure by providing a permissionless, decentralized, and open stablecoin system,” Sharif-Askary also stated.
The fresh trust works similarly to Grayscale’s other single asset investment vehicleswith the fund being invested solely in MKR tokens. The Trust is now open for daily subscription by eligible individual and institutional accredited investors, providing them with a convenient way to gain exposure to the MakerDAO protocol.
This announcement comes on the heels of Grayscale’s recent announcement starts up Grayscale Bittensor Trust, dedicated to the TAO token supporting the Bittensor protocol, and Grayscale Sui Trust, focused on the SUI token underpinning the Sui Layer 1 blockchain.
MKR Price Action
The Grayscale news sparked a surge in the MKR token, which hit an 8-month low of $1.7 on August 5 amid a broader situation market crash and global economic uncertainty that led to increased selling.
MKR is trading at $2.10, up almost 6% in the past few hours, as well as a 16% boost in 24-hour trading volume of $124 million, indicating investor interest in the token’s prospects.
To fully capitalize on this recent rally, MKR needs to consolidate above the $2.06 level as it acted as retaining wall for the token in the past few days prior to Tuesday’s bullish news on the MKR/USDT daily chart. This would be key to MKR’s future progress and the potential to break through the next resistance barrier at $2.16.
However, if demand and buying pressure for the token and the broader market recovers, which could also have contributed to MKR’s 10 percent gain last week, then MakerDAO’s native token could face the next resistance levels at $2.31, $2.42, and $2.73 en route to reclaiming the $3 mark.
Featured image from DALL-E, chart from TradingView.com
