An altcoin fund launched by crypto investment giant Grayscale in 2019 made a 3-digit rally as the markets opened today. The company has not yet given any details about the price increase.
Grayscale-backed altcoin fund skyrocketed 150% in a matter of hours
Grayscale’s XLM fund, which invests in XLM and trades in OTC markets, saw its share price skyrocket as markets opened today. The price of the fund, which is traded with the GXLM code, has gained more than 150% in a few hours. It rose from $12.25 to $32.59 in the first place. After a slight correction, it is back up 100% to $24.10. The GXLM fund is now worth three times the altcoin it is based on, XLM. The fund was launched in 2019 and Grayscale has yet to make a statement regarding the price increase.
Launched in January 2019, the GXLM fund currently manages $6.6 million worth of assets. The historical performance of the fund has been quite dynamic. The share price dropped to the level of $3 in 2020, but rose as high as $95 in October 2021.
A seismic shift is taking place among institutional investors
The recent rally could signal a renewed institutional interest in banking-focused Stellar Lumens (XLM). The jump in GXLM funding also marks an extraordinarily impressive rise. It shows a significant development behind the scenes. Here are some of the services that the project promises to institutional investors as to why XLM is getting so much attention:
- Soroban: Soroban is Stellar’s upcoming smart contract layer. Stellar’s new technology is expected to go live in September 2023.
- MoneyGram access: Important for institutional investors in cash-to-crypto integrations built on Stellar. Users can convert their local currency to USDC at MoneyGram locations here.
- UNHCR refugee aid support technology. UNHCR’s recent introduction of cash-based aid payments has given people in Ukraine a new system. The system works using Stellar’s, Circle’s USDC stablecoin, and MoneyGram Access technology.
- Coinbase Stellar adds USDC. Coinbase users can now access using local currency with services like MoneyGram access. This allows anyone, even those without banking access, to convert money to USDC and vice versa and bridge to the token base.
CoinShares reports that there are Bitcoin entries installed on Grayscale
Companies like Grayscale reported last week that a total of $188 million has been entered into Bitcoin. Bitcoin with a short position, on the other hand, has been out for nine weeks and has experienced an exit of $ 4.9 million. Ethereum, on the other hand, received an inflow of $ 7.8 million. This shows that interest in Ethereum is currently lower than Bitcoin.
As Cryptokoin.com reported, CoinShares states that the excitement for altcoins has not yet been reflected. Meanwhile, altcoins like XRP and Solana recorded “very small” entries throughout the week.
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