Grayscale Excludes MATIC, Introduces AVAX & XRP In Fund Rebalancing Efforts

The changes in allocations are affecting Grayscale’s Digital Large Cap Fund, DeFi Fund, and Smart Contract Platform Ex-Ethereum Fund.

Grayscale, the asset manager, has adjusted the weightings in three of its crypto funds. Tokens like Polygon MATIC have decreased to $0.8351, while Avalanche AVAX has increased to $34.51 and XRP to $0.57. This was detailed in an announcement on Jan. 5.

Grayscale’s quarterly review has led to new allocations affecting its Digital Large Cap Fund (GDLC), DeFi Fund (DEFG), and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).

The updated breakdown of the Digital Large Cap Fund shows Bitcoin BTC at 69.15%, valued at $43,956, Ether ETH at 21.90% with a value of $2,244, Solana SOL at 3.65% and $93, XRP at 2.54%, Cardano AD at 1.62% and $0.523, and AVAX at 1.14%. MATIC has been removed from GDLC due to this rebalancing.

In the DeFi Fund managed by Grayscale, one notable change involves removing the Curve DAO (CRV) token from the portfolio. The updated basket includes Uniswap UNI at 41.11% with a value of $6.38, Lido (LDO) at 23.90%, MakerDAO MKR at 13.39% valued at $1,742, Aave AAVE at 12.63% and $99.41, and Synthetix SNX at 8.97% valued at $3.54.

Even though MATIC was removed from one portfolio, it remains a part of the GSCPxE Fund without any additions or removals of tokens. The current makeup of the fund includes SOL at 44.54%, ADA at 19.77%, AVAX at 13.89%, Polkadot DOT at 9.75% valued at $7.14, MATIC at 8.25%, and Cosmos (ATOM) at 3.80%.

Fund managers regularly reassess and fine-tune the weightings to maximize the fund’s performance, aligning with current market conditions, risk evaluations, and investment goals. Typically, this adjustment occurs every quarter.

Grayscale adopts CoinDesk DeFi Select Index methodology to set benchmarks for its funds. These funds, like the DeFi Fund aimed at providing access to decentralized financial markets, have faced setbacks during the crypto winter. Presently, its shares are valued at $22, marking a 9.28% decline over the last 24 hours.

The crypto asset manager is among the firms pursuing regulatory clearance for a spot Bitcoin exchange-traded fund (ETF) in the United States by transforming its Grayscale Bitcoin Trust from over-the-counter to a listed BTC ETF. The SEC is anticipated to make a decision by January 10.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.