Asset management firm Grayscale has recently adjusted the weightings of its cryptocurrency portfolios, resulting in changes to three of its funds.
These adjustments, which were announced on January 5th, are part of Grayscale’s routine quarterly review process.
The impacted funds include the Digital Large Cap Fund (GDLC), the DeFi Fund, and the Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).
In the Digital Large Cap Fund, the new allocation breakdown now includes Bitcoin at 69.15%, Ether at 21.90%, Solana at 3.65%, XRP at 2.54%, Cardano at 1.62%, and AVAX at 1.14%.
As a result of this rebalancing, Polygon’s MATIC token has been removed from the GDLC portfolio.
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In the DeFi Fund, changes include the removal of the Curve DAO (CRV) token from the portfolio.
The updated basket of assets now consists of Uniswap at 41.11%, Lido DAO at 23.90%, MakerDAO at 13.39%, Aave at 12.63%, and Synthetix.
Interestingly, while MATIC was dropped from one of the portfolios, it still remains in the GSCPxE Fund. This fund’s composition now includes SOL at 44.54%, ADA at 19.77%, AVAX at 13.89%, Polkadot at 9.75%, MATIC at 8.25%, and Cosmos at 3.80%.
Grayscale’s fund managers regularly review and adjust the fund’s weightings to optimize performance in line with current market conditions, risk assessments, and investment objectives. This process is typically carried out on a quarterly basis.
Grayscale utilizes the CoinDesk DeFi Select Index methodology to determine the benchmarks for its funds.
It’s worth noting that funds like the DeFi Fund, designed to provide exposure to decentralized financial markets, have faced challenges due to the recent crypto market downturn.
As of the time of writing, the fund’s shares were trading at $22, reflecting a 9.28% decrease in the past 24 hours.
Furthermore, Grayscale is actively seeking regulatory approval for a spot Bitcoin exchange-traded fund (ETF) in the United States by converting its existing Grayscale Bitcoin Trust (GBTC) into a publicly listed BTC ETF.
The U.S. Securities and Exchange Commission (SEC) is expected to announce its decision on this matter on January 10th.
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