Yearn Finance’s governance token YFI reached a new milestone on Friday as its price crossed over the $50,000-mark for the first time in history.
The gains appeared as Grayscale Investments, a New York-based cryptocurrency management firm, registered an LLC for a prospective Yearn Finance Trust. That prompted traders to raise their bids for YFI, given Grayscale’s critical role in shooting Bitcoin prices upwards after accumulating almost 3 percent of the flagship cryptocurrency’s active supply for its proprietary Bitcoin Trust.
The YFI Bull, Explained
Grayscale’s core business model offers accredited investors the opportunity to gain exposure in cryptocurrency markets by purchasing shares of its open-ended private trusts that hold the digital assets in concern. For instance, its Grayscale Bitcoin Trust, or GBTC, has 649,130 BTC to date and its per-share cost is around $48 over-the-counter.
The company accumulates additional crypto-assets based on institutional demand. Therefore, analysts typically consider its buyouts as bullish for the concerned assets. As it shows interest in launching a Yearn Finance trust, bulls believe the move would bring high-profile investments into the decentralized finance sector.