Grayscale Investments Revamps DeFi Fund: What You Need to Know

New Changes: A Sign of the Times

As of January 3, Grayscale Investments has made headlines with a major rebalance of its Grayscale DeFi Fund, simultaneously significant and scintillating. This adjustment introduces the native collateral token of the Flexa payment network, AMP, into the mix of DeFi assets, while saying goodbye to Bancor (BNT) and Universal Market Access (UMA).

The Role of AMP in Crypto Payments

What’s the big deal about AMP, you ask? Flexa employs this token to collateralize crypto payments, turning them into shiny fiat as they make their way to merchants. Essentially, AMP is the cool kid at a party where everyone can finally dance to the sounds of easy crypto acceptance. Financial platforms licking their lips at the sight of AMP? Yep, that’s what it’s all about.

The DeFi Fund Gets a Makeover

The rebalancing means that Grayscale’s DeFi Fund now flaunts a colorful mix of nine crypto assets across the decentralized finance ecosystem. At the top of the list is Uniswap (UNI) strutting with a hefty 42.33% weighting, while our new friend AMP is adding a respectable 7.39% to the party. Note that these adjustments reflect the changes made to CoinDesk’s DeFi Index (DFX), so it’s not just a random shuffle.

Performance That Packs a Punch

As of this writing, the Grayscale DeFi Fund has a share price of $5.56, marking a robust gain of 11.2% since it was launched with an initial price of $5. So, if you’re someone who bought a ticket to this ride, do a little happy dance! The fund is managing assets worth $11.6 million, with 2.08 million shares floating out there in the crypto sea.

Bitcoin Trust: Rocking the Boat

Not to be outdone, Grayscale’s Bitcoin Trust is catching attention as well, boasting $30.1 billion in assets under management. Shares are currently trading at $34.27, reflecting a hearty 23% increase since July 14, and an astounding 59.16% surge over the past year. Everyone loves a good comeback story, and Grayscale is weaving one for the ages!

Comparing the Titans: Grayscale vs. DeFi Pulse Index

Both the Grayscale DeFi Fund and its Bitcoin Trust are currently outperforming the DeFi Pulse Index (DPI). Now, despite DPI having a heftier trading volume, it has experienced a slight dip of 2% since July 14. So, while the DPI is busy preparing for a rematch, Grayscale is steadily paving its path towards crypto stardom.

The Year in Review: Grayscale’s BTC Accumulation

It’s also worth mentioning that Grayscale snatched up an impressive 645,199 BTC by the end of 2021, accounting for an eyebrow-raising 71% of the total market held by spot Bitcoin ETFs and corporations. Talk about having a solid strategy! Grayscale has solidified its position as a heavyweight champion in the crypto arena.