By Shelly Melancon (Switzerland)
The bustle in the decentralized finance space has attracted the attention of leading asset management and investment firm, Grayscale. Following this, it has announced the creation of a DeFi Investment Fund for institutional investors looking to make an entry into the space. The proposed DeFi Fund is one out of the numerous Funds the firm has established, including its popular Bitcoin Trust ($GBTC).
While speaking during CNBC’s Squawk Box Show on July 19, Grayscale’s CEO, Michael Sonnenshein made the revelation. He declared that the rising demand for DeFi assets necessitated the launch of the DeFi fund. Grayscale’s DeFi Fund represents the 15th investment Fund it has established, including the recently launched Digital Large Cap Fund, which accordingly precedes the former. Notwithstanding, Grayscale has proposed to open more investment funds, especially for altcoins such as Polygon and Solana.
ADA Becomes Third Largest Holding in Grayscale’s MultiCap Fund
Speaking of altcoins, Grayscale added Cardano-owned $ADA to its multi-cap investment Fund recently. ADA’s addition makes it the third largest holding in its multi-cap digital assets investment after Bitcoin and Ethereum. Grayscale has been considering opening individual trusts for DeFi tokens such as Polkadot ($DOT), Cosmos’ $ATOM and $AAVE. It had also filed for Trusts on Livepeer, Tezos, DecentraLand.
Upon the approval of its Digital Large Cap Fund by SEC, it became a SEC-reporting firm, which empowers it with the right to reduce its Trust’s lock-up duration from 12 to 6 months. According to reports, the large cap fund will comprise flagship cryptocurrency, Bitcoin, Ethereum, Bitcoin Cash (BCH) and Ethereum Classic ($ETC).
In view of its DeFi Fund, Grayscale has it sights on Uniswap’s UNI and a host of nine other DeFi tokens such as Aave ($AAVE), Compound ($COMP), MakerDAO ($MKR), Curve (CRV), SushiSwap (SUSHI), Synthetix (SNX), Yearn Finance (YFI), UMA Protocol (UMA) and Bancor (BNT). Ethereum-based Uniswap toppled other tokens to attain the largest allocation- 49.95%
Grayscale CEO Expresses Delight at the DeFi Fund Launch
In a published statement, CEO Michael highlighted the opportunities that the DeFi launch presented, saying the emergence of DeFi protocols allows for the transformation of the entire financial system. The CEO further expressed the firm’s delight in launching a DeFi Fund and offering controlled exposure to its investors on investment products.
Despite the general market crash- which instigated an over 60% dip in crypto prices- some DeFi tokens have managed to stay sane. Ethereum led an altcoins’ revolt against Bitcoin dominance last week. At the time, $AXS, $COMP, $SNX recorded new highs on their prices.
The DeFi space has presented crypto investors with the opportunity to make returns off their investments even amid a general price lull, through activities like staking, liquidity farming, lending, borrowing, swapping and NFTs trades. Although at a nascent stage, it has grown beyond measure giving rise to new technologies. The space is set to experience meteoric growth as Grayscale prepares to make a foray. Of all its Trusts, its Bitcoin Trust still remains the largest as it reportedly holds over 650,000 BTC.
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