Tech

Sushi and Synthetix get the boot in Grayscale DeFi Fund rebalancing

04/07/2022
Bitcoin Ethereum News

Digital asset management firm Grayscale has added three new cryptocurrency assets across three main investment funds while removing two other assets from its Decentralized Finance Fund as part of this year’s first quarterly rebalance. 

Grayscale removed tokens from crypto-derivatives decentralized exchange Synthetix and decentralized exchange SushiSwap, as well as from its decentralized finance (DeFi) fund after the two crypto assets failed to meet the required minimum market capitalization. No other cryptocurrencies were removed during the rebalancing.

Grayscale’s DeFi fund, which was launched in July last year, currently holds approximately $8 million in assets. The digital assets remaining in the DeFi fund after the quarterly rebalance include Uniswap, Aave, Curve, MakerDAO, Amp, Yearn.finance and Compound.

The crypto asset manager added Avalanche (AVAX) and Polkadot (DOT) to its Digital Large Cap Fund, alongside adding Cosmos (ATOM) to its Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).

The GSCPxE Fund, which was launched on March 22, offers investors the ability to bet on an index of Ethereum’s largest competitors. The GSCPxE Fund’s current holdings listed by the total amount held are Cardano (ADA), Solana (SOL), AVAX, DOT, Polygon (MATIC), Algorand (ALGO), Stellar (XLM) and ATOM.

Related: Ethereum is like the best and worst parts of New York: Grayscale

Grayscale remains the world’s leading crypto asset manager, reporting that it held $43.5 billion in assets under management as of January 3, 2022. The Grayscale Bitcoin Trust (GBTC) remains the largest fund with just over $30 billion in AUM, but has traded at an increasing discount to its net asset value for the past year. GBTC is followed in size by the Grayscale Ethereum Trust (ETCG) which currently holds approximately $11.8 billion in AUM.

In 2021, cryptocurrency investment funds generated over $9.3 billion in inflows as institutional adoption rose to new highs. Grayscale is gearing up to offer a Bitcoin Spot exchange-traded fund (ETF) and said it was willing to pursue legal action if the investment product remains barred by the United States Securities and Exchange (SEC).