The world’s largest cryptocurrency investment firm, Grayscale Investments, announced updates to the fund component weights of its core investment products. These include the Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund, and Grayscale Smart Contract Platform Ex-Ethereum Fund. The company recently added Ripple’s XRP and Avalanche’s AVAX to the GDLC, a move that will please investors of these two altcoins.
Grayscale Investments’ Portfolio Revisions
A recent press release from Grayscale Investments indicated that various revisions have been made to the company’s portfolios. These revisions were carried out in accordance with the CoinDesk Large Cap Select Index methodology during the fourth quarter reviews of 2023. In the latest revision, Polygon (MATIC) was removed from the GDLC portfolio.
As of January 4, 2024, the main fund components of GDLC include Bitcoin (BTC) at 69.15% and Ethereum (ETH) at 21.90%. The fund components also include Solana (SOL) at 3.65%, XRP at 2.54%, Cardano (ADA) at 1.62%, and AVAX at 1.14%.
Additionally, during the quarterly rebalancing for the DeFi Fund, some fund component weights were adjusted. Consequently, Curve DAO Token (CRV) was removed from the DeFi Fund’s portfolio. The current portfolio components of the DeFi Fund include Uniswap (UNI) at 41.11% and Lido (LDO) at 23.90%, along with MakerDAO (MKR) at 13.39%, Aave (AAVE) at 12.63%, and Synthetix (SNX) at 8.97%.
On the other hand, there were no changes in the portfolio components of Grayscale Investments’ GSCPxE Fund. This fund is dominated by SOL at 44.54% and ADA at 19.77%. Other cryptocurrencies in the fund’s portfolio components include AVAX at 13.89%, Polkadot (DOT) at 9.75%, MATIC at 8.25%, and Cosmos (ATOM) at 3.80%.
Progress on Grayscale’s Spot Bitcoin ETF Application
Grayscale Investments submitted an S-3 form to the U.S. Securities and Exchange Commission (SEC) on January 2nd. Furthermore, following the resignation of Grayscale Investments’ Chairman Barry Silbert last week, the company updated its application to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
With this update, Grayscale Investments has aligned its application for converting GBTC into a spot Bitcoin ETF with the cash redemption model expected by the SEC. The company is now in the final stages of its application to the U.S. regulator for the conversion of GBTC into a spot Bitcoin ETF.
