Grayscale, a prominent asset manager, has launched two new investment trusts aimed at accredited investors. These trusts offer exposure to Bitcoin layer 2 networks such as Stacks and NEAR Protocol. The move is part of Grayscale's strategy to cater to investor demand for diversified crypto assets. According to Rayhaneh Sharif-Askary, Grayscale's Head of Product and Research, the firm is committed to expanding its product offerings to include emerging sectors of the crypto ecosystem.

Stacks, a Bitcoin layer 2 network, enhances Bitcoin's functionality by enabling smart contracts and decentralized finance applications. Recently, Stacks has gained attention following its Nakamoto upgrade and the growing popularity of its protocols Ordinals and Runes. Kyle Ellicott, Stacks’ Investor Relations Lead, noted increasing institutional interest in the ecosystem, highlighting a trend towards making Bitcoin more accessible and usable.

NEAR Protocol, introduced in 2020, focuses on decentralized cloud computing with a high-speed blockchain infrastructure. The project has recently established a research and development lab focused on artificial intelligence, indicating its commitment to advancing technological innovations within its ecosystem.

Grayscale's approach includes offering private placements as initial stages of its product lifecycle, with eventual plans to convert these into exchange-traded funds (ETFs). While the Grayscale Bitcoin Trust (GBTC) is currently the only ETF-approved product, Grayscale is actively seeking SEC approval to convert its Ethereum Trust into an ETF, adapting to regulatory dynamics and market demands.

The latest development from Grayscale involves an amended filing for its Spot Ethereum ETF application, reflecting ongoing dialogue with the SEC. The removal of the "staking" clause from the application aligns with SEC guidelines, potentially paving the way for a significant regulatory milestone. As Grayscale navigates these regulatory pathways, the crypto community anticipates further advancements in ETF approvals, marking a pivotal moment in the industry's evolution.