- Grayscale has rebalanced the token allocations of its Digital Large Cap, DeFi, and Smart Contract Platform Ex-Ethereum investment funds.
- Changes include removing MATIC from the Digital Large Cap fund, dropping CRV from the DeFi fund, and no additions/removals for the Smart Contract Platform Ex-Ethereum fund.
- The rebalancing aims to optimize performance amid changing market conditions. Largest allocations are to BTC, ETH, Solana, Cardano, and other major tokens.
Grayscale, an asset manager focused on digital currencies, has adjusted the token allocations across three of its crypto investment funds. These changes are part of Grayscale’s quarterly reviews and aim to optimize the funds’ performance.
Funds Impacted
The rebalancing impacts Grayscale’s Digital Large Cap Fund (GDLC), DeFi Fund (DEFG), and Smart Contract Platform Ex-Ethereum Fund (GSCPxE).
Digital Large Cap Fund
In the Digital Large Cap Fund, the biggest change is the removal of Polygon‘s MATIC token. Bitcoin still makes up the largest portion at 69.15%, while Ethereum is allocated 21.9%. Other top tokens include Solana, Cardano, Avalanche, and XRP.
DeFi Fund
For the DeFi Fund, Curve’s CRV token has been dropped from the portfolio. Top assets include Uniswap, Lido, MakerDAO, Aave, and Synthetix.
Smart Contract Platform Ex-Ethereum Fund
The GSCPxE fund saw no tokens added or removed. Its largest allocations are to Solana, Cardano, Avalanche, Polkadot, and Polygon’s MATIC.
Rationale Behind Changes
According to Grayscale, the rebalancing aims to optimize its funds’ performance amid changing market conditions and risk profiles. The company uses CoinDesk’s DeFi Select Index methodology to guide its allocation decisions.
Many crypto funds like Grayscale’s have struggled during the ongoing bear market. The changes are likely an attempt to boost returns until conditions improve. Grayscale is also seeking regulatory approval to convert its Bitcoin Trust into a spot BTC exchange-traded fund.
