Grayscale, the world’s largest crypto asset manager, announced an update to its fund component weightings for its DeFi Fund and Digital Large Cap Fund products in connection with their respective quarterly reviews.
Its DeFi Fund has been rebalanced with AMP, the native collateral token of the Flexa payment network being added, while Bancor (BNT) and Universal Market Access (UMA) have been removed.
AMP is the native token of the Flexa network, a payment network that enables crypto-collateralized payments at physical stores and online. Flexa uses the AMP token to collateralize crypto payments and settles them in fiat to recipients enabling merchants to accept crypto easily.
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What you should know
Grayscale adjusted its DeFi Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase Amp (AMP). As a result of the rebalancing, BNT and UMA have been removed from the DeFi Fund.
By enabling payments through the Flexa network, supporting merchants can accept payment in BTC, ETH, and other digital assets, with ease and transparency. According to Grayscale, The Flexa network is one of a number of projects intended to accelerate the development of the blockchain into a mature peer-to-peer money system.
Grayscale reshuffled weightings but did not change the token list of The Grayscale Digital Large Cap Fund (GDLC).
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Grayscale’s DeFi Fund now consists of nine different crypto assets from the DeFi ecosystem. Uniswap (UNI) has the highest weighting in the fund with 42.33%, while the newly added AMP takes 5th spot with a weight of 7.39%.
At the time of writing, the Grayscale DeFi Fund has a share price of $5.56, which is an 11.20% gain since its July 14, 2021, inception share price of $5. The fund has $11.6 million assets under management (AUM) and 2.09 million shares outstanding.
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Bottomline
Grayscale is best known for its Grayscale Bitcoin Trust (GBTC) which currently has $30.1 billion assets under management. Since its inception, the fund is up over 30,000% with 692.3 million shares outstanding.
Both the Grayscale DeFi Fund and its Bitcoin Trust have outperformed the DeFi Pulse Index (DPI), the largest retail DeFi index by market cap, since July 14. Although DPI has a higher trading volume, it has fallen by 2% over the same period.
Neither the DeFi Fund nor the Digital Large Cap Fund generates any income, and both regularly distribute Fund Components to pay for ongoing expenses. Therefore, the amount of Fund Components represented by shares of each fund gradually decreases over time.
