Grayscale launches trust fund based on Lido DAO and Optimism

Grayscale announced today that it is offering two new investment vehicles – a Trust based on Lido DAO (LDO) and a fund based on Optimism (OP). Both of these tru...

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Grayscale announced today that it is offering two new investment vehicles – a Trust based on Lido DAO (LDO) and a fund based on Optimism (OP). Both of these trusts are currently available.

The company asserts that Lido DAO and Optimism both have equal potential to contribute to the Ethereum blockchain ecosystem. Both assets have also experienced similar price fluctuations over the past year.

Grayscale Creates New Trusts Based on 2 Altcoins

Grayscale, one of the largest Bitcoin ETF issuers, announced the news today via a release press. The Lido DAO Trust and Optimism will provide exposure to the respective protocol’s Tokens. However, the company has also highlighted Ethereum’s native blockchain in both protocols.

The Grayscale Lido DAO Trust and Optimism provide investors with exposure to protocols that help improve the efficiency, security, scalability and adoption of Ethereum within the broader DeFi ecosystem – plays an important role in the story of Ethereum,” said Grayscale Head of Product & Research, Rayhaneh Sharif-Askary.

The company has employed this strategy before, producing a non-ETF Trust that provides cryptoasset exposure. Grayscale converted an existing Trust product into a Bitcoin ETF and established two new Trusts in October. They created an XRP trust at the beginning of the month, while other companies filed for an ETF and an XLM-based fund in the weeks that followed.

Both protocols share a few similarities other than the use of Ethereum. Optimism, a rollup scaling solution, has seen dramatic price movements over the past year. Although the overall crypto bull market has brought strong new momentum, Optimism’s token value suffered major shocks earlier this year.

Optimism (OP) Price Performance — Optimism Price Performance (OP). Source: TinTucBitcoin

Lido, an Ethereum staking solution, has also experienced similar fluctuations this year. There were problems in the Solana service in April, leading to negative publicity.

However, there are positive technological developments, such as the integration of Chainlink CCIP in October.

In other words, Grayscale may have chosen Lido DAO and Optimism because of these impressive recoveries, along with their potential to improve the Ethereum network. Grayscale already has an Ethereum ETF, but it has underperformed. However, both of these Ethereum-connected products are showing much stronger momentum.