Below is a performance summary of our new private placement products since their respective launches in 2024, as compared to the overall crypto market performance since each such product’s launch:
| 2024 Private Placements | Product Inception Date | Returns of Product since Product inception date1 | Broad crypto market cap returns since Product inception date |
| Grayscale Sui Trust | 8/1/2024 | 428% | 55% |
| Grayscale XRP Trust | 9/5/2024 | 321% | 82% |
| Grayscale Avalanche Trust | 8/20/2024 | 93% | 72% |
| Grayscale Aave Trust | 10/2/2024 | 92% | 69% |
| Grayscale Bittensor Trust | 6/10/2024 | 61% | 38% |
| Grayscale Decentralized AI Fund | 7/2/2024 | 12% | 76% |
| Grayscale Stacks Trust | 5/22/2024 | 2% | 38% |
| Grayscale MakerDAO Trust | 8/8/2024 | -12% | 67% |
| Grayscale Near Trust | 5/22/2024 | -23% | 38% |
| Average Return | 108% | 60% | |
Source: Artemis, Grayscale. As of December 10, 2024. Past performance is not indicative of future results. Performance is rounded to the nearest whole value. Returns shown include all management fees. NAV per share is calculated using non-GAAP methodology. For additional information, see the applicable product’s private placement offering memorandum and other offering documents. Crypto market cap is measured by the total amount of circulating tokens in USD.
Our goal is to continue to leverage our crypto-native expertise to anticipate market trends and uncover opportunities ahead of the curve. We are committed to identifying assets with compelling investment theses that have the potential to deliver returns on behalf of our investors.
Available to eligible accredited investors2, our private placement products allow investors to gain exposure to the product’s underlying token(s) at net asset value (NAV)3 with cash, or for select single-asset products, in-kind by contributing tokens. These products can be purchased in certain tax-advantaged retirement accounts, such as IRAs.
If you are an eligible accredited investor interested in investing, or want to learn more about our private placement products, please reach out to a Grayscale portfolio consultant at 866-775-0313 or [email protected]. If you’re ready to invest, we invite you to start an application by logging in to our investor portal, Slate by Grayscale.
1 NAV per Share is calculated daily at 4 pm ET, based on the applicable Index or Reference Rate.
2 Grayscale’s private placements are only available to Accredited Investors as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended. Most individuals are not Accredited Investors. An individual must earn more than $200,000 a year (or $300,000 per year with a spouse or spousal equivalent), have a net worth over $1 million either alone or together with a spouse or spousal equivalent, excluding their primary residence, or hold in good standing their Series 7, Series 65, or Series 82 professional certifications. Entities must have $5 million in liquid assets or all beneficial owners must be Accredited Investors.
3 Net Asset Value (NAV) represents the value of an investment fund and is calculated by adding the total value of the fund’s assets and subtracting its liabilities.
Important disclosures:
Grayscale Investments, LLC (“Grayscale”) is the parent holding company of Grayscale Advisors, LLC (“GSA”), an SEC-registered investment adviser, as well Grayscale Securities, LLC (“GSS”), an SEC registered broker/dealer and member of FINRA. Grayscale is not registered as an investment adviser under the Investment Advisers Act of 1940 and none of the investment products (“Products”) sponsored or managed by Grayscale are registered under the Investment Company Act of 1940.
An investment in any of the Products mentioned is a speculative investment that involves high degrees of risk, including a partial or total loss of invested funds. The Products are speculative, illiquid and not suitable for any investor that cannot afford loss of the entire investment.
Carefully consider investment objectives, risk factors, fees and expenses before investing. This and other information can be found in each Product’s private placement memorandum, which may be obtained from Grayscale and, for each Product that is an SEC reporting company, the SEC’s website, or for each Product that reports under the OTC Markets Alternative Reporting Standards, the OTC Markets website. Reports prepared in accordance with the OTC Markets Alternative Reporting Standards are not prepared in accordance with SEC requirements and may not contain all information that is useful for an informed investment decision. Read these documents carefully before investing.
The shares of each Product are intended to reflect the price of the digital asset(s) held by such Product (based on digital asset(s) per share), less such Product’s expenses and other liabilities. Because each Product does not currently operate a redemption program, there can be no assurance that the value of such Product’s shares will reflect the value of the assets held by such Product, less such Product’s expenses and other liabilities, and the shares of such Product, if traded on any secondary market, may trade at a substantial premium over, or a substantial discount to, the value of the assets held by such Product, less such Product’s expenses and other liabilities, and such Product may be unable to meet its investment objective.
If the shares trade at a premium, investors who purchase shares on the secondary market will pay more for their shares than investors who purchase shares directly from authorized participants. In contrast, if the shares trade on the secondary market at a discount, investors who purchase shares directly from authorized participants will pay more for their shares than investors who purchase shares on the secondary market.
The shares of each Product are not registered under the Securities Act of 1933, the Securities Exchange Act of 1934 (except for Products that are SEC reporting companies), the Investment Company Act of 1940, or any state securities laws. The Products are offered in private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act of 1933 and are only available to accredited investors. As a result, the shares of each Product are restricted and subject to significant limitations on resales and transfers. Potential investors in any Product should carefully consider the long-term nature of an investment in that Product prior to making an investment decision. The shares of certain Products are also publicly quoted on OTC Markets and shares that have become unrestricted in accordance with the rules and regulations of the SEC may be bought and sold throughout the day through certain brokerage accounts. This content does not constitute an offer to sell or the solicitation of an offer to sell or buy any security in any jurisdiction where such an offer or solicitation would be illegal. There is not enough information contained in this content to make an investment decision and any information contained herein should not be used as a basis for this purpose.
Product Risk Factors:
The Sui protocol was only conceived in 2021 and the Sui protocol or its Bullshark and Narwhal consensus mechanisms may not function as intended, which could have an adverse impact on the value of SUI and an investment in the shares.
The Aave protocol was only launched in 2017 and the Aave protocol, aTokens, flash loans, GHO, or the Aave Network’s peer-to-peer lending and borrowing mechanisms may not function as intended, which could have an adverse impact on the value of AAVE and an investment in the shares.
The Bittensor protocol was only recently conceived and its Yuma Consensus and Proof-of-Authority consensus mechanisms may not function as intended, which could have an adverse impact on the value of TAO and an investment in the shares.
The Artificial Intelligence protocols underlying the Fund Components were only recently conceived and the technologies underlying the protocols may not function as intended, which could have an adverse impact on the value of the Fund Components and an investment in the shares.
The Stacks protocol was only conceived in 2017 and its “proof-of transfer” consensus mechanisms may not function as intended, which could have an adverse impact on the value of STX and an investment in the shares.
The MakerDao protocol was only conceived in 2015 and the MakerDao protocol, Dai, or CDPs may not function as intended, which could have an adverse impact on the value of MKR and an investment in the shares.
The Near protocol was only conceived in 2017 and the Near protocol or its Nightshade and Doomslug consensus mechanisms may not function as intended, which could have an adverse impact on the value of NEAR and an investment in the shares.
Digital Asset Risk Disclosures:
Extreme volatility of trading prices that many digital assets have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of the Product and the shares of each Product could lose all or substantially all of their value.
Digital assets represent a new and rapidly evolving industry. The value of the Product shares depends on the acceptance of the digital assets, the capabilities and development of blockchain technologies and the fundamental investment characteristics of the digital asset.
Digital asset networks are developed by a diverse set of contributors and the perception that certain high-profile contributors will no longer contribute to the network could have an adverse effect on the market price of the related digital asset.
Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets.
The value of the Product shares relates directly to the value of the underlying digital asset, the value of which may be highly volatile and subject to fluctuations due to a number of factors.
A substantial direct investment in digital assets may require expensive and sometimes complicated arrangements in connection with the acquisition, security and safekeeping of the digital asset and may involve the payment of substantial acquisition fees from third party facilitators through cash payments of U.S. dollars. Because the value of the Shares is correlated with the value of digital asset(s) held by the Product, it is important to understand the investment attributes of, and the market for, the underlying digital asset. Please consult with a financial professional.
The Products rely on third party service providers to perform certain functions essential to the affairs of the Product and the replacement of such service providers could pose a challenge to the safekeeping of the digital asset and to the operations of the Products.
Except as noted below, Grayscale does not store, hold, or maintain custody or control of any Product’s digital assets, but instead has entered into a Custodian Agreement on behalf of each Product with Coinbase Custody Trust Company, LLC (the “Custodian”), a third party to facilitate the security of each Product’s digital assets. The Custodian controls and secures each Product’s digital asset account, a segregated custody account to store private keys, which allow for the transfer of ownership or control of the digital asset, on each Product’s behalf. If the Custodian resigns or is removed by Grayscale or otherwise, without replacement, it could trigger early termination of such Product. Grayscale Investments, LLC currently serves as a key maintainer for any Product’s TAO holdings.
The Products are distributed by Grayscale Securities, LLC (Member FINRA/SIPC). SIPC coverage does not apply to the crypto asset products or services mentioned.
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