Grayscale, a leading asset manager, has announced a rebalancing of weights for three of its crypto funds. This move has led to the removal of certain tokens such as Polygon MATIC, while others like Avalanche AVAX and XRP XRP have been added. The announcement was made on January 5.
The revised allocations are part of Grayscale’s quarterly review and affect its Digital Large Cap Fund (GDLC), DeFi Fund (DEFG), and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund). The new composition of the Digital Large Cap Fund includes Bitcoin BTC, which comprises 69.15%, Ether ETH with a 21.90% allocation, Solana SOL at 3.65%, XRP with 2.54%, Cardano (ADA) at 1.62%, and AVAX making up 1.14% of the fund. As a result of the rebalancing, MATIC was removed from GDLC.
Changes were also made to Grayscale’s DeFi Fund, which saw the removal of the Curve DAO (CRV) token. The new basket is now formed by Uniswap (UNI) with a 41.11% allocation, Lido (LDO) holding 23.90%, MakerDAO (MKR) with 13.39%, Aave (AAVE) at 12.63%, and Synthetix SNX at 8.97%.
Despite being dropped from one of the portfolios, MATIC is still included in the GSCPxE Fund, where no tokens have been added or removed. The updated composition of this fund consists of Solana SOL at 44.54%, Cardano (ADA) at 19.77%, AVAX holding 13.89%, Polkadot (DOT) at 9.75%, MATIC with 8.25%, and Cosmos (ATOM) at 3.80%.
Fund managers regularly review and adjust the weightings to optimize the fund’s performance based on current market conditions, risk assessments, and investment objectives. This process is typically done on a quarterly basis. Grayscale uses the CoinDesk DeFi Select Index methodology to determine its funds’ benchmarks.
Some of Grayscale’s funds, such as its DeFi Fund, which is designed to offer exposure to decentralized financial markets, have been negatively impacted by the crypto winter. At the time of writing, its shares are trading at $22, down 9.28% over the past 24 hours.
Grayscale is among the companies seeking regulatory approval for a spot Bitcoin exchange-traded fund (ETF) in the United States. This would be achieved through the conversion of its over-the-counter Grayscale Bitcoin Trust into a listed BTC ETF. The Securities and Exchange Commission (SEC) is expected to announce a decision on this matter on January 10.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Grayscale Bitcoin Trust, CoinDesk, United States Securities and Exchange Commission (SEC), Grayscale |
| Currencies | Solana, XRP, Cardano, Bitcoin, Lido Staked Ether |
| Securities | None |
