Cryptocurrencies have been playing an increasingly important role in the financial sector. Grayscale Investments is leading the charge in this regard. The crypto investment fund has launched several ventures over the years, and is now adding ZenCash to its portfolio.
ZenCash is a Rather Interesting Addition
While it is commendable to see entities such as Grayscale Investments introduce cryptocurrency investment to the masses, there is still a lot of work to be done. More specifically, the cryptocurrency industry remains relatively unappealing to the average user. Solutions provided by this investment firm may help shake things up a bit in the future.
The company has added a new instrument to its existing offerings. After focusing on Bitcoin, Ethereum Classic, and a few other currencies in the past, Grayscale Investments is now paying attention to ZenCash, of all currencies. Whether or not that will prove to be a smart decision remains to be seen.
ANNOUNCEMENT: We are excited to share that we will launch our 9th product, ZenCash Investment Trust, during Q3!
— Grayscale (@GrayscaleInvest) June 14, 2018
Considering that this is the company’s ninth investment product, one has to wonder how it will shape up compared to the others. In the past few years, Grayscale Investments has begun bringing investment trust offerings to institutional investors all over the world. The choices of Bitcoin and Bitcoin Cash made a lot of sense. Zcash was added to the list not long ago as the first privacy-oriented cryptocurrency supported by this group.
With ZenCash now joining this list, it seems Grayscale Investments is preparing to give privacy-oriented currencies a fair shot. Regulators have not taken a similar approach, as these types of currencies are of great concern at this time. So much, even, that Japanese exchanges have been asked to remove all privacy and anonymity-oriented currencies from their platforms until further notice.
There is another aspect to this latest product launch which is worth noting. Although Grayscale Investments could easily stick to the major cryptocurrencies and hopefully reap the rewards of doing so, they are instead diversifying their portfolio. Cryptocurrency enthusiasts need to keep in mind that active diversification is key. That doesn’t mean all currencies are worth investing in, although there are plenty of projects with some potential.
It will be interesting to see how this addition pays off. ZenCash is a spin-off from Zcash at its core, although both currencies are working toward somewhat different goals. It is interesting to see Grayscale Investments give both projects a shot, even though neither of them has succeeded in gaining any major traction to date.