Institutional investors are clearly interested in cryptocurrencies. This is evidenced by the fact that institutional money is drying up the sell-side liquidity, pushing Bitcoin prices higher. However, it won’t be long before these investors get a taste for the volatility and superior returns that Bitcoin and the cryptocurrency markets offer. Hence, it will only be a matter of time before investors attempt to diversify into altcoins.
While Ethereum is the most popular cryptocurrency after Bitcoin, investors will want more. This is where investing companies like Grayscale and other institution-faced platforms that offer altcoin investments will come into the picture.
Investment in Bitcoin will fuel the growth of altcoins with strong fundamentals
Bitcoin will no doubt be the main attraction, especially in light of the fact that it is expected to head to $100,000 this cycle. However, as the dust from this cycle settles, DeFi will take the spotlight due to obvious reasons,
- Potential to replace the traditional finance industry and its outdated systems
- A quicker and far efficient system that can be decentralized
- Rapid reduction of human intervention
- Evolution of a new industry and new use-cases
Enter: Grayscale
For a few weeks now, Crypto-Twitter has been going on about how LINK will be the next asset listed on Grayscale. As previously reported, this might be more than just a pipe dream since Grayscale has incorporated an additional six trusts in the state of Delaware that includes LINK, among other crypto-assets.
Source: State of Delaware
As can be observed, the other cryptocurrencies include BAT, MANA, FIL, LPT, & XTZ. With Grayscale buying up most of the newly minted BTCs, the addition of new altcoins will definitely be bullish for these coins. Perhaps, an evolution of the “Grayscale Effect,” one quite similar to the effects seen during the exchange listing of tokens during the ICO or IEO periods of 2017-18 will be soon upon us.
The plan of action would be simple – Buying these coins and holding would be the best way to guarantee good returns. The reason is simple as Grayscale would have chosen these projects/tokens due to their strong fundamentals and by gauging the investor interest in the market.
Even on the price performance front, some of these altcoins continue to be in the price discovery phase. Hence, they have the potential to surge higher on the charts, uninterrupted, without any buyer pressure waiting to dump the coins.
Source: LINKUSD on TradingView
LINK, for example, underlined a promised surge of 30% to 70%, if it does manage to get listed on Grayscale.