Grayscale Investments, a cryptocurrency asset management, has established a new fund that gives investors exposure to smart contract networks other than Ethereum ($ETH). The fund’s main holdings are Cardano ($ADA) and Solana ($SOL).
The Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE) holds tokens from other smart contract networks such as Polkadot ($DOT), Polygon ($POLY), Algorand ($ALGO), Avalanche ($AVAX), and Stellar ($XLM), according to publicly available data.
Its largest holding is ADA, which accounts for 25.35 percent of the funds, followed by Solana, which accounts for 23.3 percent. Avalanche comes in second with 18.4 percent, followed by Polkadot with 15.4 percent.
The allocation is noteworthy since it comes at a time when the Cardano network’s transaction volumes, as well as the total value locked in its decentralized finance (Defi) protocol, are on the rise. Cardano recently overtook Kusama in terms of total value locked.
Charles Hoskinson, co-founder, and CEO of IO Global, the company in charge of Cardano’s research and development, said earlier this month that “we ain’t seen nothing yet” when it comes to TVL on Cardano, as several projects await the Vasil hard fork combinator (HFC) event, which is expected to take place in June.
The GSCPxE fund, according to Grayscale CEO Michael Sonneshein, allows investors to bet on a range of growing platforms rather than just one emerging as the major venue for Defi and decentralized applications.
Market capitalization is used to weigh the fund’s holdings. Grayscale rebalanced its Digital Large Cap Fund (GDLC) last year to include a new ADA component, giving investors access to the cryptocurrency after it soared over 1,000 percent in a year. Market capitalization is used to weigh the fund’s holdings. Grayscale rebalanced its Digital Large Cap Fund (GDLC) last year to include a new ADA component, giving investors access to the cryptocurrency after it soared over 1,000 percent in a year.
As of March 31, 2021, Grayscale Investments, LLC (“Grayscale”) was the world’s largest digital currency asset manager, with more than $45.6 billion in assets under management. Grayscale gives accredited investors secure access to the digital currency asset class. Through its single-asset and diversified investment packages, it attracts investors
The investment products offered by Grayscale (the “Products”) are named securities that are IRA-eligible. The Shares, according to Grayscale, are a cost-effective and quick way to acquire access to capital, in comparison to a direct investment in digital assets, digital asset exposure.
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