$27 Billion Grayscale Launches DeFi Index for Institutional Investors

July 23, 2021, 12:15 PM AEST - 2 months ago

Grayscale Investments, the world’s largest digital currency asset manager, has announced the launch of its newest diversified investment product, the Grayscale Decentralised Finance Fund.

Grayscale Moves into DeFi

Grayscale is perhaps best known for its flagship product, the Grayscale Bitcoin Trust (GBTC) – the biggest buyer of bitcoin in 2020 and for years the only only viable way institutional investors could gain exposure to the asset without physical custody.

The GBTC grew incredibly quickly during Bitcoin’s run-up to its all-time high in April, and now is in the process of converting the trust into an exchange traded fund.

However, following strong institutional interest, Grayscale has partnered with CoinDesk to create the Grayscale DeFi Fund (Fund) which aims to provides investors with exposure to a selection of industry-leading DeFi protocols through a market-capitalisation weighted portfolio designed to track the CoinDesk DeFi Index (Index).

With increasing attention on the innovations within decentralised finance, it’s critical for the investment community to have tools that deliver calculated exposure to this exciting area of innovation. This collaboration offers investors the data and tools they need to gain exposure to decentralised finance into their portfolios.

Jodie Gunzberg, managing director, CoinDesk Indexes

The Fund is Grayscale’s 15th investment product, and its second diversified fund offering. 

This latest move into DeFi is evidence of growing institutional demand in the space.

Constituents of the Index

As of July 1, 2021, the Index consisted of the following assets and weightings:

  • Uniswap (UNI), 49.95%
  • Aave (AAVE), 10.25%
  • Compound (COMP), 8.38%
  • Curve (CRV), 7.44%
  • MakerDAO (MKR), 6.49%
  • SushiSwap (SUSHI), 4.83%
  • Synthetix (SNX), 4.43%
  • Yearn Finance (YFI), 3.31%
  • UMA Protocol (UMA), 2.93%
  • Bancor Network Token (BNT), 2.00

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.