stub Quarterly Rebalance Sees AVAX Join Grayscale's Diversified Funds as SUSHI And SNX Are Knocked Off - Securities.io
Connect with us

Avalanche News

Quarterly Rebalance Sees AVAX Join Grayscale’s Diversified Funds as SUSHI And SNX Are Knocked Off

mm
Updated on

Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.

As part of its customary quarterly rebalance, investment asset manager Grayscale has adjusted its diversified funds, according to a Blockworks exclusive report. A press release shared by the firm towards the end of last week detailed that it added and also axed some crypto assets from the funds it manages.

The native tokens of Synthetix (SNX) and SushiSwap (SUSHI) which failed to satisfy the minimum requirements for market cap, have been slashed off the asset manager's Decentralized Finance Fund. According to data provided by CoinMarketCap, SushiSwap has a fully diluted market cap of $801.56 million, and Synthetix has a figure of $1.017 billion.

The change means the Fund, which was launched in 2018, now contains MakerDAO (MKR), Yearn Finance (YFI), Uniswap (UNI), Amp (AMP), Curve (CRV), Aave (AAVE), and Compound (COMP).

For Grayscale's new additions, there is Avalanche (AVAX) and Polkadot (DOT), which have been included in the Digital Large Cap Fund. Cosmos (ATOM), on the other hand, is the new asset in the new Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).

To learn more about these tokens, visit our Avalanche, Polkadot and Cosmos guides.

An ex Ethereum Fund

The GSCPxE Fund, launched on March 22 (almost a week after inception on March 16), serves investors who want exposure to the wide array of altcoin assets outside of Ethereum. At the time of launch, it had Solana and Cardano as the weightiest components based on the portfolio percentage. AVAX and DOT, which have now joined the Digital Large Cap Fund, were also among the debutants of the GSCPxE Fund. Polygon, Stellar Lumens, and Algorand also had a bite.

What assets captain Grayscale's various funds?

Grayscale remains the world's largest asset manager, and $4.4 million worth of ‘its' assets sit under management in the GSCPxE Fund.

Data at close as of Friday showed that Solana had the lead share ownership in this Fund with 26.18%, Cardano has 24.99%, Avalanche is third with 15.32%, and Polkadot's fourth-ranked with a 13.80% share. The rest of Polygon, Cosmos, Stellar, and Algorand have less than 10% proportions each – 7.63%, 5.29%, 3.47%, and 3.32%, respectively.

Bitcoin had the largest share in the Digital Large Cap Fund, which has marginally over $444 million in assets under management. The leader in market capital rankings boasts of a 60.28% share. Ethereum, as expected, follows with 28.84%. Solana's token is next with 2.86%, above Cardano and Avalanche, which have fund components per share of follows at 2.60% and 1.77%, respectively.

There are a handful of other assets that Grayscale has in this Fund, with proportions less than 1%, including Bitcoin Cash, Chainlink, Uniswap, and Litecoin.

Assets' Under Consideration' List

Towards the tail end of January this year, Grayscale shared a new list of 25 possible entries it had ‘Under Consideration' for addition as investment products.

The investment firm specified that being ‘Under Consideration' wasn't an assurance that an asset would be adopted as an investment product. It also said it could consider assets that were not present on the list as of the time – January 24.

“‘Assets Under Consideration' lists some digital assets that are not currently included in a Grayscale investment product, but that have come to our attention as part of our exploration of this sector, and that our team has identified as possible candidates for inclusion in a future investment product. Assets could be included in the Grayscale Product family without first being listed on this table.”

Notably, Cosmos (ATOM) was added to the Smart Contract Fund, though it wasn't on the list.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.