Grayscale’s Latest Quarterly Rebalance - New Additions and Removals

Grayscale’s Regular Tune-Up

Grayscale, the digital asset management titan, has kicked off the year with its first quarterly rebalance, injecting new life into its investment funds. While it added exciting cryptocurrencies, it also waved goodbye to a couple of underperformers. A common tale in the world of crypto, right?

Farewell to Synthetix and SushiSwap!

In a bold move, Grayscale bid adieu to the tokens from Synthetix and SushiSwap, both formerly part of its Decentralized Finance Fund. The reason? They simply didn’t measure up to the required market capitalization. Perhaps they should’ve consulted a life coach? Meanwhile, the remaining stalwarts in Grayscale’s DeFi fund include:

Uniswap
Aave
Curve
MakerDAO
Amp
Yearn.finance
Compound

With a fresh valuation of around $8 million, Grayscale’s DeFi fund continues to hold its head high despite these recent changes.

New Faces in the Fund

On the upside, Grayscale welcomed Avalanche (AVAX) and Polkadot (DOT) into its Digital Large Cap Fund. Alongside the addition of Cosmos (ATOM) to the Smart Contract Platform Ex-Ethereum Fund, also known as the GSCPxE Fund, this move is being celebrated by investors looking for variety in their crypto portfolios. The GSCPxE Fund boasts these heavyweights among its holdings:

Cardano (ADA)
Solana (SOL)
AVAX
DOT
Polygon (MATIC)
Algorand (ALGO)
Stellar (XLM)
ATOM

The Heavyweight Champion

Staying true to its reputation, Grayscale remains the leading crypto asset manager, reporting a whopping $43.5 billion in assets under management (AUM) as of the start of 2022. The Grayscale Bitcoin Trust (GBTC) continues to dominate with over $30 billion in AUM, despite experiencing an increasing discount to its net asset value recently. Right on its heels is the Grayscale Ethereum Trust (ETCG) with approximately $11.8 billion in AUM.

Looking Ahead: A Spot ETF?

With cryptocurrency investment funds raking in over $9.3 billion in 2021 due to soaring institutional adoption, Grayscale is not resting on its laurels. The company is gearing up to launch a Bitcoin Spot exchange-traded fund (ETF) and is ready to take the SEC to court if necessary. Talk about determination!