Grayscale rebalances DeFi Fund dropping Balancer (BAL) and UMA

Crypto asset manager Grayscale Investments has rebalanced its Grayscale DeFi Fund and adjusted weightings of its Digital Large Cap Fund.

A Jan. 3 announcement detailed the changes Grayscale made to its two funds. The DeFi Fund’s weightings have been rebalanced with AMP, the native collateral token of the Flexa payment network being added, while Bancor’s (BNT) and Universal Market Access (UMA) have been removed.

Flexa uses the AMP token to collateralize crypto payments and settles them in fiat to recipients enabling merchants to accept crypto easily.

Grayscale reshuffled weightings but did not change the token list of The Grayscale Digital Large Cap Fund (GDLC).

We have just announced updated component weightings for Grayscale #DeFi Fund, which now includes $AMP. This is the first time AMP will be included in a Grayscale investment vehicle. Read this thread for more: pic.twitter.com/jfKAih24cS

— Grayscale (@Grayscale) January 3, 2022

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 comprises 7.39%. The changes to the fund reflect those made to the CoinDesk’s DeFi Index (DFX).

At the time of writing, the Grayscale DeFi Fund has a share price of $5.56, which is an 11.2% gain since its July 14 inception share price of $5. The fund has $11.6 million assets under management and 2.08 million shares outstanding.

Grayscale is best known for its Grayscale Bitcoin Trust which currently has $30.1 billion assets under management. Shares are trading at $34.27, up 23% since July 14, and up 59.16% over the past 12 months.

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.

Related: Grayscale finds that over 25% of US households surveyed currently own Bitcoin

Grayscale had the highest increase in Bitcoin (BTC) holdings among spot Bitcoin ETFs and corporations through 2021 by accruing 645,199 BTC by the end of the year, which accounts for 71% of the spot ETF and corporate markets BTC holdings.