Cryptocurrency News

Grayscale Launches Smart Contract Investment Vehicle Consisting of Ethereum Competitors

By March 23, 2022 No Comments

Key takeaways:

  • Alternative investment company Grayscale has launched a new investment product that tracks seven smart contract platforms, with the notable omission of Ethereum
  • At the moment, the fund tracks ADA, SOL, AVAX, DOT, MATIC, ALGO, and XLM
  • Grayscale is the largest cryptocurrency asset management company; the firm manages more than 654,000 coins through its Bitcoin fund

Grayscale’s new fund consists entirely of Ethereum smart contract competitors

The world’s largest cryptocurrency asset management firm Grayscale Investments has launched its 18th investment product, called Smart Contract Platform Ex-Ethereum Fund (GSCPxE). The new investment vehicle allows digital currency investors to gain market exposure to a range of smart contract platforms and the booming decentralized finance (DeFi) space.

Grayscale’s new diversified crypto fund tracks CoinDesk’s Smart Contract Platform Select Ex ETH Index and applies different weighting to the seven blockchain projects included in the fund. According to a press release, Cardano and Solana account for the largest share of the fund, with roughly 24% allocations, while Stellar and Algorand collectively account for approximately 8% of the total fund. The remaining cryptocurrencies included in the fund are Avalanche, Polkadot, and Polygon.

Grayscale CEO Michael Sonnenshein said in a statement that the new fund was launched as a response to growing investor demand for “diversified exposure.” Sonnenshein added that while smart contract functionality is undoubtedly here to stay, it is still “too early” to predict which smart contract platform will emerge victorious in the long run. The CEO continued:

“The beauty of GSCPxE is that investors do not have to choose one winner, and instead can access the development of the smart contract platform ecosystem through a singular investment vehicle.”

According to the company’s recent snapshot, Grayscale’s BTC fund accounts for by far the biggest allocation of AUM, with roughly $26.4 billion at contemporary Bitcoin market rates.