Grayscale Revamps Crypto Funds: New Altcoins for AI, DeFi, and Large Cap Portfolios

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Four of Grayscale’s premier crypto investment funds have recently received portfolio updates from the forefront investment company, Grayscale.

The modifications were applied to the Grayscale AI Fund focused on Decentralized Artificial Intelligence, the Grayscale DeFi Fund focusing on Decentralized Finance, the Grayscale GDLC Fund dealing with Large Cap Digital Assets, and the Grayscale GSCPxE Fund excluding Ethereum from Smart Contract Platforms.

Grayscale Adjusts Portfolio

According to Grayscale, the updates reflect the firm’s Q4 2024 reviews. 

Grayscale recently refreshed and modified the building blocks of their four multi-asset investment funds: Grayscale Decentralized AI Fund, DEFG, GDLC, and Grayscale Smart Contract Platform Ex-Ethereum Fund. This update was announced in a tweet on January 9.

It’s crucial to make adjustments because people frequently consider Grayscale’s funds as a benchmark when constructing their investment portfolios.

In response to adjustments made for the AI Fund, Grayscale has swapped some of its current holdings for Livepeer and other digital assets. This move now incorporates Livepeer tokens (LPT) into the fund’s portfolio, which already consists of NEAR Protocol, Render, Bittensor, Filecoin, The Graph, and potentially others.

As an analyst, I’ve noticed that our DeFi Fund by Grayscale has undergone a slight adjustment. Previously held Synthetix was offloaded, and Curve was brought in to replace it. The revised portfolio now includes heavyweights like Uniswap, Aave, Lido, MakerDAO, and the newly added Curve. Notably, Uniswap takes up approximately 47.88% of the fund’s composition, with Curve accounting for around 6.71%.

The Digital Large Cap Fund (GDLC) has undergone an adjustment. Grayscale decided to sell Avalanche and invest the proceeds in Cardano instead. Now, the fund comprises Bitcoin, Ethereum, Solana, XRP, and Cardano. Notably, Bitcoin dominates the fund with a 73.52% share, while Cardano represents just 1.44%.

To wrap things up, the GSCPxE Fund underwent a rebalance, with SUI taking over for certain previously held cryptocurrencies. The revised composition now features Solana, Cardano, Avalanche, Sui, NEAR Protocol, and Polkadot.

According to Grayscale, adjustments were made to keep the funds aligned with their particular strategies. These modifications occur each quarter based on the assessment findings.

However, the firm added that these funds do not generate income.

Neither AI Fund, DEFG, GDLC, nor GSCPxE Fund produce income. Instead, they consistently distribute Fund Components to cover operational costs. Consequently, the value of the Fund Components associated with each fund’s shares diminishes progressively over time,” Grayscale explained.

Furthermore, in October 2024, Grayscale mentioned that it was contemplating incorporating 35 different altcoins into its upcoming investment offerings. The company also revised its investment approach in September of the previous year, as it pinpointed the top 20 cryptocurrencies anticipated to yield profits during Q4.

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2025-01-09 09:43