Grayscale Investments, the world's largest digital asset manager, announced on January 25, 2022, that it had updated its list of assets under consideration for investment products. With $30.6 billion in net assets under management, the firm added 25 new crypto assets to its watchlist, bringing the total number of considered assets to 43. Additionally, Amp (AMP) was the sole digital asset added to Grayscale's product family, meaning it now has a dedicated investment vehicle.
What Does the Watchlist Mean?
Grayscale described its 'Assets Under Consideration' list as containing “some digital assets that are not currently included in a Grayscale investment product, but that have come to our attention as part of our exploration of this sector, and that our team has identified as possible candidates for inclusion in a future investment product.” The firm stressed that creating an investment product similar to existing ones is a complex, multifaceted process involving internal controls, custody arrangements, and regulatory considerations.
New Assets Added
The 25 newly added assets are: Algorand (ALGO), Arweave (AR), Axie Infinity (AXS), Bancor (BNT), Bittorrent (BTT), Bora (BORA), Convex (CVX), Cosmos (ATOM), Decred (DCR), Elrond (EGLD), Enjin (ENJ), Fantom (FTM), Gala (GALA), Gelato (GEL), Helium (HNT), Holo (HOT), Iota (IOTA), Oasis Network (ROSE), Secret (SCRT), Spell (SPELL), Stacks (STX), The Sandbox (SAND), Universal Market Access (UMA), VeChain (VET), and Yield Guild Games (YGG). These assets span multiple sectors of the crypto economy, including Layer-1 blockchains, DeFi protocols, NFT platforms, gaming guilds, and decentralized storage networks.
Grayscale's Investment Product Process
Being added to the watchlist does not guarantee that Grayscale will launch a product for that asset. The company explained that the process “requires significant review and consideration and is subject to our internal controls, custody arrangements, and regulatory considerations, among other things.” Grayscale currently offers several single-asset trusts (e.g., GBTC for Bitcoin, ETHE for Ethereum) and diversified funds. Most products are available through private placements to accredited investors, with shares later tradable on secondary markets.
Market Implications
As the largest crypto asset manager globally, Grayscale's asset selection moves are closely watched by institutional investors. The expansion of its watchlist to 43 assets signals a broadening of interest beyond the top coins, potentially increasing exposure and liquidity expectations for the listed tokens. However, the timeline for converting these candidates into actual investment products remains uncertain and will depend on regulatory approvals, particularly from the U.S. Securities and Exchange Commission (SEC), as well as market demand.