Grayscale has launched a trust fund to publicise non-ETH tokens like Solana , Cardano and other DeFi-driving projects.
As of March 16, the Grayscale Smart Chain Platform ex Ethereum Fund (GSCPxE) held a fair share of Cardano (ADA), Solana (SOL), Avalanche (AVAX), Polkadot (DOT), Polygon (MATIC), Algorand (ALGO) and Stellar (XLM).
Grayscale smart contract fund
According to the CEO of Grayscale, Michael Sonnenshein, this trust fund aims to make it easy for investors to key into various developing decentralised projects, rather than backing just one to become the sole home for DeFi activities.
“Smart contract technology is critical to the growth of the digital economy, but it’s still too early to know which platform will win.
– from attracting and retaining the most vibrant developer communities, to ensuring the platform is high-speed, flexible, and scalable,” he said in a statement. “The beauty of GSCPxE is that investors do not have to choose one winner, and instead can access the development of the smart contract platform ecosystem through a singular investment vehicle.”
Grayscale explains the ETH was excluded from this project because they believe that many investors already have stakes in the second-largest cryptocurrency. So, they aim to create more awareness for the other tokens in the DeFi space.
The fund weighs its portfolio holding of the different assets by market capitalisation by tracking them using CoinDesk indices. According to this index, Cardano and Solana weigh the highest, with each accounting for over 24% of the total holdings. Closely behind them are Avalanche and Polkadot, each making up 16% of the total holdings.
Third major fund from Grayscale
This is Grayscale’s third diversified fund after its Decentralised Finance Fund and its Digital Lage Cap fund.
As part of its quarterly rebalancing, Grayscale reshuffled its decentralised Finance Fund assets, dropping Bancor and UMA for AMP early last year.
Recall that Grayscale, during its second diversified product, added 15 investment products to its fund, with Uniswap accounting for over 49% of the total fund.