Grayscale is by far the largest crypto fund manager in the world. To date, the company actually has more than $27 billion in bitcoin and other crypto assets under management. The company doesn’t want to stop there and has just announced the launch of a fund dedicated to Decentralized Finance (DeFi).
The giant Grayscale and crypto
Grayscale is the largest crypto fund manager in the world. Initially, the company made a name for itself in 2015 via its Bitcoin fund, allowing institutional investors to gain exposure to the price fluctuations of the queen of cryptocurrencies.
Subsequently, Grayscale added more than a dozen other crypto-currencies to its offering, which currently includes both large-cap crypto-currencies such as Ethereum or Filecoin, as well as smaller-cap crypto-currencies like Horizen or Zcash.
In total, Grayscale currently manages over $27 billion across its 14 funds. Unsurprisingly, the Bitcoin fund remains the most in demand to date, with a cumulative total value of over $20 billion.
These funds are particularly popular with institutional investors, as they allow them to gain exposure to cryptocurrency price movements without having to hold the assets and manage custody.
A new DeFi background for Grayscale
The company has been exploring the addition of various cryptocurrencies from the DeFi ecosystem for several months now.
Finally, according to an announcement released this Monday, July 19, Grayscale has made the choice to create a DeFi fund featuring ten crypto-currencies from Ethereum’s ten main DeFi protocols.
In practice this fund will initially be composed of the following crypto-currencies:
- 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%.
According to the company’s spokesperson, the addition appears to be in response to growing demand from institutional investors for the DeFi ecosystem:
“Our investors have expressed strong interest in DeFi and it’s a space that has seen organic user adoption, alongside a very active developer community.”
Uniswap (UNI) at the top of the list
As we can see, the Uniswap protocol’s UNI token comes in far ahead by accounting for nearly 50% of the fund’s exposure.
It seems that Grayscale has a lot of faith in the Unicorn protocol, which holds the largest market share on decentralized Ethereum exchanges.
A few months ago, the platform launched version 3 of its protocol. More recently, it announced the deployment of a version of its platform on the second layer solution Optismism.
Of course, Grayscale is not the first company to offer a DeFi background. For example, Bitwise launched its Bitwise DeFi Crypto Index Fund in February. Other funds like DefiPulse Index offer the same type of service in a decentralized way.