Grayscale Adds Stellar (XLM) to Investment Portfolio

Stellar, often seen as the open source-equivalent to Ripple (XRP), has become part of Grayscale Capital’s fund portfolio.

Grayscale has expanded its portfolio of funds to include Stellar (XLM), an asset considered the open-source equivalent of Ripple’s XRP. Stellar has often been regarded as a potential platform for data transfers, cross-border banking transactions, and tokens.

Grayscale announced the newest developments through social media, adding that it was also renaming its existing trusts:

Based on the latest report, the XLM fund still holds just $400,000 worth of investments as the asset is less known compared to leading coins. However, XLM is seen as a promising, low-priced asset. Each share in the XLM fund share is worth $10.66.

The market price of XLM has stagnated around $0.10 in the past days. XLM has often moved against the market, sometimes in coordination with XRP. The asset remains solidly within the top 10 coins by market capitalization.

XLM is down a net 79% year-on-year and is down more than 89% down from its peak prices in dollar denomination. But in the past months, it has performed well against BTC, with regular rallies in its Satoshi price. XLM, which peaked at $0.93 on January 4, 2018, has shown significant volatility and carries additional risk for being one of the less understood digital assets.

XLM trading has migrated to up-and-coming exchanges, with the biggest shares on ZB.Com and Exrates, which are relative newcomers to the crypto space. Binance is also a significant source of price setting. XLM is relatively independent of BTC prices due to the high share of Tether (USDT) trading. The XLM/USDT pair makes up more than 67% of all trades for this asset, in effect having immense influence for the buyers of the Grayscale investment vehicle.

Grayscale will also create additional demand for XLM, as the organization holds the underlying asset although buyers in the fund do not directly receive coins or tokens. This is the tenth investment vehicle giving exposure to the world of digital assets.

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