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Asset Manager Grayscale Introduces Crypto Fund for MakerDAO’s MKR

Grayscale is rolling out a new single-asset fund for MakerDAO’s governance token.

The new closed-end fund will be accessible to eligible individual and institutional accredited investors.

Grayscale, the asset manager company behind bitcoin {{BTC}} and ether {{ETH}} exchange traded-funds (ETFs) and other crypto investment funds, introduced Tuesday a new fund that invests in the governance token of decentralized lending platform MakerDAO {{MKR}}.

MKR advanced over 5% in an hour following the news, hitting $2,100. The token is up nearly 8% over the past 24 hours, outperforming the mostly flat broad-market CoinDesk 20 Index.

The Grayscale MakerDAO Trust is accessible to eligible individual and institutional accredited investors, and has the same structure as the firm’s other single-asset trusts, according to a press release. This means that it’s a closed-end fund where direct withdrawals are not possible, which could lead to price deviations between the fund’s share on secondary markets and the underlying asset.

Read more: The GBTC Discount Is Narrowing; Here’s Why It Matters

Maker is one of the largest protocols in the decentralized finance (DeFi) led by a community of token holders, or decentralized autonomous organization (DAO). Those who hold MKR tokens can participate in decision-making and vote on proposals. The protocol manages over $7 billion of crypto and real-world assets (RWA) including U.S. Treasuries and issues the third largest stablecoin on the market, the $5 billion DAI.

The protocol is currently undergoing a major revamp called “End Game” coined by founder Rune Christensen, which includes the issuance of upgraded versions of MKR and DAI.

Read more: Rune Christensen Explains Why He Wants to Remake Maker and Kill DAI

The offering follows Grayscale’s newly launched single-asset funds for decentralized artificial intelligence (AI) project Bittensor’s {{TAO}} token and layer-1 blockchain Sui {{SUI}} last week. The company also opened a decentralized AI-focused fund that invests in a basket of cryptocurrencies including near {{NEAR}}, render {{RNDR}} and filecoin {{FIL}}, nearly a month ago.

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