Why are Altcoins related to Grayscale products all increasing in price?

According to BeInCrypto's observation, the altcoins that have shown large price fluctuations this month belong to the group related to Grayscale's investment products or projects proposed by Grayscale this quarter.

Investors tend to choose projects proposed by large funds. This has led to more positive price movements for altcoins.

Investors expect Grayscale's ETF conversion to be successful

Recent observations by the community have noticed that many "old coins" have seen strong price increases again. In November, for example, Stellar (XLM) has increased by 600%, Avalanche (AVAX) has increased by 100%, Aave (AAVE) has increased by 60%, Basic Attention Token (BAT) has increased by nearly 90%, Zcash (ZCASH) has increased by up to 130%... In fact, these "old coins" are all Altcoins that have long been part of Grayscale's investment products.

Through Grayscale's investment products, investors buy shares of the Trust funds instead of directly buying Altcoins. Since Trump's victory and SEC Chairman Gary Gensler's announcement of his upcoming resignation, investors expect Grayscale's proposals to convert the Trust funds into ETFs to be successful. This has created a positive psychological effect on all Altcoins related to Grayscale.

Stellar (XLM) is a recent example. Just the positive news that Grayscale Stellar Lumens Trust (XLM) has filed a 10-K with the SEC has caused the XLM price to rise by 50% in a single day.

Most of Grayscale's Trust funds have seen a significant narrowing of their NAV (Net Asset Value). The NAV per share is either positive or only slightly negative by a few percentage points. This reflects the increasing demand from investors to invest in these types of Trust funds.

Also Read: Expecting Innovation Under Donald Trump, Bitwise Files for Solana ETF

Altcoins proposed by Grayscale have all seen good growth this month

A month ago, Grayscale revealed 35 Altcoins it is considering for investment products. Looking back now, except for Helium (HNT) and Neon EVM (NEON) which have seen negative growth, all the remaining 33 Altcoins are among the most liquid Altcoins and have seen the most impressive growth in the market.

The psychology of retail investors usually tends to pay more attention to coins proposed by industry "giants". Therefore, it is predicted that Grayscale's or Coinbase's proposals are likely to continue to be noticed and become the sought-after Altcoins during the Altcoin Season.

"Coinbase exchange has announced a "COIN50" fund. The fund includes 50% BTC, 28.8% ETH, 6.4% SOL, 2.9% XRP, 1.4% DOGE. The remaining portion includes 45 Altcoins selected from various portfolios. These types of initiatives and the "portfolio baskets" created by Grayscale in the past provide us with clues about the ETFs that may be available in the coming period." - Investor Keçi predicts.

Also Read: WisdomTree Launches XRP ETP in Europe

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