Grayscale Revamps Crypto Funds: Introduces XRP and AVAX, Axes MATIC from Key Portfolios
Summary:
Grayscale, an asset management firm, has rearranged the allocation of three of its cryptocurrency funds, discarding certain tokens like Polygon (MATIC) while introducing Avalanche (AVAX) and XRP (XRP). The revised funds include the Digital Large Cap Fund, DeFi Fund, and the Smart Contract Platform Ex-Ethereum Fund. In the rebalancing process, MATIC was eliminated from GDLC but remained in the GSCPxE Fund. Fund managers regularly adjust weightings for performance optimization based on market conditions and risk assessments. Grayscale is also seeking regulatory approval for a spot Bitcoin exchange-traded fund in the US.
Grayscale, the asset management firm, has recently revamped the structure of three cryptocurrency funds, sidelining certain tokens including Polygon (MATIC), while introducing Avalanche (AVAX) and XRP (XRP). This reshuffling, announced on January 5th, impacts the Digital Large Cap Fund (GDLC), DeFi Fund (DEFG), and the Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund) as part of the firm's regular quarterly review. The modified Digital Large Cap Fund now includes Bitcoin (BTC) making up 69.15%, Ether (ETH) constituting 21.90%, Solana (SOL) forming 3.65%, XRP standing at 2.54%, Cardano (ADA) covering 1.62%, and AVAX accounting for 1.14%. Due to this rebalancing, MATIC was excised from GDLC. The DeFi Fund now excludes the Curve DAO (CRV) token, with a revised portfolio including Uniswap (UNI) at 41.11%, Lido (LDO) at 23.90%, MakerDAO (MKR) at 13.39%, Aave (AAVE) at 12.63%, and Synthetix (SNX) at 8.97%. MATIC, while excised from another fund, stays within the portfolio of GSCPxE Fund, which saw no tokens ousted or inducted. The newly tuned fund now comprises Solana (SOL) at 44.54%, Cardano (ADA) at 19.77%, AVAX at 13.89%, Polkadot (DOT) at 9.75%, MATIC at 8.25%, and Cosmos (ATOM) at 3.80%.Regularly, fund managers recalibrate the weightings to enhance the fund's efficacy based on current market circumstances, risk evaluations and investment goals, typically on a quarterly basis. Grayscale refers to the CoinDesk DeFi Select Index methodology to set the benchmarks for its funds. Certain funds, like the DeFi Fund aimed at gaining coverage within decentralized financial markets, have been hit by the crypto downturn. Currently, its share price stands at $22, reflecting a drop of 9.28% in the past 24 hours.Grayscale, the crypto manager, is among companies pursuing regulatory approval to have a spot Bitcoin exchange-traded fund (ETF) in the US, by transforming its over-the-counter Grayscale Bitcoin Trust into a listed BTC ETF. The Securities and Exchange Commission (SEC) is anticipated to reveal its decision on January 10th.
Published At
1/7/2024 12:36:42 AM
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