$27 Billion Grayscale Launches DeFi Index for Institutional Investors

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.

Today we’re unveiling Grayscale DeFi Fund, our second diversified investment product, which tracks the @CoinDesk #DeFi Index. Accredited Investors are now able to gain exposure to a selection of industry-leading DeFi protocols through the Fund. Learn more: https://t.co/i0hm9vrklB pic.twitter.com/QASEp9SpfK

— Grayscale (@Grayscale) July 19, 2021

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. 

07/21/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $27.5 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $UMA $BNT $ADA pic.twitter.com/GZ5t7Gayrs

— Grayscale (@Grayscale) July 21, 2021

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