Grayscale has launched a new fund that will provide exposure to a number of smart contract ecosystems that have arisen as a result of the hike of decentralised finance (DeFi).
As of March 16, the Grayscale Smart Contract Platform was holding Cardano (ADA), Solana (SOL), Avalanche (AVAX), Polkadot (DOT), Polygon (MATIC), Algorand (ALGO), and Stellar (XLM). According to Grayscale CEO Michael Sonnenshein, the goal is to allow investors to participate in a range of different platforms rather than depending on one to emerge as the major venue for decentralised activity.
“Smart contract technology is vital to the evolution of the digital economy,” he said in a statement. “However, it’s still too early to tell which platform will win—from recruiting and keeping the most robust developer communities to ensuring the platform is high-speed, adaptable, and scalable.”
The fund excludes ether because Grayscale expects that many investors are already invested in Ethereum. This product is intended to provide a broad net of exposure for the rest of DeFi.
To track the assets, the fund employs a CoinDesk index, with the portfolio’s holdings weighted by market capitalization. Cardano and Solana are the fund’s two major weights, accounting for more than a quarter of its holdings. Avalanche and Polkadot are the next most popular patterns, accounting for 16% of the total.
Grayscale’s third diversified fund, after the Decentralized Finance Fund and the Digital Large Cap Fund, is this one. It announced a reshuffling of assets in its Decentralized Finance Fund as part of its quarterly rebalancing earlier this year, eliminating Bancor and UMA and adding AMP.