In a recent development, Grayscale Investments, a global leader in crypto asset management, announced updated weightings for key funds, including the Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund, and Grayscale Smart Contract Platform Ex-Ethereum Fund. Notably, GDLC saw the addition of Ripple’s XRP and Avalanche (AVAX) to its portfolio, aligning with the CoinDesk Large Cap Select Index methodology during the fourth quarter of 2023 reviews.
Per a recent report, the adjustments in GDLC’s holdings included the removal of Polygon (MATIC) during the latest rebalancing. As of January 4, 2024, GDLC’s primary fund components showcase Bitcoin (BTC) dominating at 69.15%, followed by Ethereum (ETH) at 21.90%. The fund also diversified into Solana (SOL) at 3.65%, XRP at 2.54%, Cardano (ADA) at 1.62%, and the recently added Avalanche at 1.14%.
Grayscale DEFG Fund Reshapes Portfolio Composition
Similarly, the Grayscale DeFi Fund (DEFG) underwent changes, shedding the Curve DAO Token (CRV) from its portfolio in line with quarterly rebalancing. Presently, DEFG highlights Uniswap (UNI) leading at 41.11%, with Lido (LDO) at 23.90%, MakerDAO (MKR) at 13.39%, Aave (AAVE) at 12.63%, and Synthetix (SNX) at 8.97%.
Conversely, Grayscale’s GSCPxE Fund reported an unchanged portfolio, featuring a significant share in Solana at 44.54% and Cardano (ADA) at 19.77%. Other assets included Avalanche at 13.89%, Polkadot (DOT) at 9.75%, Polygon at 8.25%, and Cosmos (ATOM) at 3.80%.
The filing of a new S-3 form by Grayscale on Tuesday caught attention, signaling an update on their efforts to convert GBTC into a Spot Bitcoin ETF. This followed Chairman Barry Silbert’s recent departure, prompting amendments to comply with the SEC’s cash-only orders.
Furthermore, GBTC submitted a free writing prospectus (FWP) to the SEC on December 29, 2023, coinciding with similar updates from other spot Bitcoin ETF issuers. CEO Michael Sonnenshein affirmed their readiness for an ETF in 2017, partnering with authorized participants like Jane Street and Virtu.
Grayscale’s proactive adjustments in fund allocations and unwavering commitment to regulatory compliance signify its agile approach to adapt within the ever-evolving crypto domain. These strategic moves indicate their readiness to pivot swiftly in response to potential market fluctuations and to align with forthcoming regulatory developments, ensuring a poised stance amidst the shifting landscape of digital assets.