KEY FACT: Grayscale Investments has launched two new cryptocurrency investment vehicles, the Grayscale Lido DAO Trust and the Grayscale Optimism Trust, to offer accredited investors exposure to Lido DAO’s LDO token and Optimism’s OP token. Lido DAO facilitates liquid staking for Ethereum, while Optimism provides a Layer 2 scaling solution for faster, cost-effective Ethereum transactions. Both trusts aim to enhance Ethereum’s scalability, security, and DeFi adoption. The trusts are available for daily subscription by accredited investors and reflect a growing institutional interest in Ethereum’s evolving ecosystem.

Source: Grayscale

Grayscale Launches Lido DAO Trust and Optimism Trust

Grayscale Investments, a leading asset management firm specializing in cryptocurrency investments, has expanded its portfolio with the introduction of two new investment vehicles: the Grayscale® Lido DAO Trust and the Grayscale® Optimism Trust. These trusts provide accredited investors with exposure to the governance tokens of Lido DAO (LDO) and Optimism (OP), respectively, both of which are pivotal in enhancing the Ethereum ecosystem. The development was announced through a blog post on December 12, 2024

Grayscale Investments®, an asset management firm with expertise in crypto investing, offering more than 25 crypto investment products, today announced the launch of Grayscale® Lido DAO Trust and Grayscale® Optimism Trust (collectively the “Trusts”)...Grayscale is excited to offer investors products providing exposure to the governance tokens of Lido DAO, LDO, and Optimism protocol, OP, both offering solutions to expand and improve the Ethereum ecosystem. Source

Lido DAO offers a liquid staking solution for Ethereum, democratizing staking by allowing users to stake their Ether (ETH) while maintaining liquidity. This approach secures the Ethereum network and also fosters the growth of decentralized finance (DeFi) applications on the platform. Optimism, on the other hand, functions as a Layer 2 scaling solution that alleviates congestion on the Ethereum network by providing faster and more cost-effective transactions through the use of Optimistic Rollups. This technology enables Ethereum to scale efficiently, competing with newer, faster Layer 1 blockchains.

Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, emphasized the significance of these protocols:

"Lido is helping to democratize staking on Ethereum, and Optimism is critical in allowing Ethereum to scale to compete with newer, faster Layer 1 blockchains. Grayscale Lido DAO Trust and Grayscale Optimism Trust provide investors with exposure to protocols helping to increase Ethereum's efficiency, security, scalability, and adoption within the broader DeFi ecosystem—playing a critical role in the Ethereum story."

The Grayscale Lido DAO Trust allows investors to gain exposure to LDO, the governance token for Lido’s platform. LDO is part of Grayscale’s Financials Crypto Sector, which includes crypto assets aimed at facilitating financial transactions and services. Similarly, the Grayscale Optimism Trust offers exposure to OP, the governance token for the OP collective. OP is categorized under Grayscale’s Smart Contract Platforms Crypto Sector, encompassing crypto assets designed to support financial transactions and services.

Both trusts are now open for daily subscription by eligible individual and institutional accredited investors. They function similarly to Grayscale’s existing suite of single-asset investment trusts, investing solely in the tokens underpinning the Lido and Optimism protocols. It's important to note that Grayscale’s private placements are available only to Accredited Investors as defined in Rule 501(a) of Regulation D under the Securities Act of 1933. This includes individuals earning more than $200,000 annually (or $300,000 with a spouse or spousal equivalent), those with a net worth exceeding $1 million (excluding primary residence), or entities with $5 million in liquid assets.

This development is part of Grayscale's ongoing strategy to broaden its investment offerings within the cryptocurrency space. Earlier in the year, Grayscale added Lido's LDO token to its DeFi Fund, making it the second-largest component at that time, accounting for over 19% of the fund's assets. This shows Grayscale's confidence in Lido's liquid staking protocol and its role in the DeFi ecosystem.

The launch of these trusts depicts a growing institutional interest in Ethereum's scalability and security solutions. Grayscale is enabling accredited investors to participate in the evolution of Ethereum's infrastructure by providing structured investment vehicles for Lido DAO and Optimism. This initiative will broaden investment opportunities as well as support the maturation of the cryptocurrency market by integrating advanced technological solutions into traditional financial products.

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