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Grayscale updates fund components, adds AMP, removes BNT and UMA

Grayscale updates fund components, adds AMP, removes BNT and UMA

Last updated 12th Apr 2022
Disclosure

Grayscale Investments, the operator of Grayscale DeFi Fund and Grayscale Digital Large Cap Fund, updated its fund component weightings for each product. The owner of Grayscale is Digital Currency Group, the parent company of CoinDesk, who reported the news.

Grayscale sells existing components  

Grayscale adjusted the DeFi fund’s portfolio by selling some existing Fund Components in relation to their respective weightings. They used the funds to buy the Amp token.

They removed Bancor (BNT) and Universal Market Access (UMA) from the CoinDesk DeFi Index and the DeFi Fund as a result of the rebalancing.

AMP enables crypto payments

AMP is the native token of the Flexa network, which makes crypto-collateralized payments at physical stores and online possible. Flexa uses its native token to collateralize digital asset payments pending blockchain confirmation and settles the payments to the recipient in fiat.

Merchants who support the Flexa network can accept payment in Bitcoin, Ethereum, and other cryptocurrencies more easily and trustlessly. The Flexa network is one of several projects aimed at accelerating blockchain development into a mature peer-to-peer financial system.

Current DeFi Fund components

At the end of the day on Jan. 3, 2022, the DeFi Fund’s Fund Components were a basket of the following assets and weightings: Uniswap, AAVE, Curve, MakerDAO, Amp, Yearn Finance, Compound (COMP), Synthetix (SNX), and SushiSwap (SUSHI).

Grayscale added Solana and Uniswap in October

Grayscale Digital Large Cap Fund did not add or remove any tokens. This announcement follows the October 2021 news that Grayscale adjusted the Digital Large Cap Fund’s portfolio by selling certain amounts of the existing components.

Back then, the funds were used to buy Solana (SOL) and Uniswap (UNI).

Cardano added in July

Back in July 2021, Grayscale adjusted the portfolio and bought Cardano (ADA). October was the first time Solana was included in a Grayscale investment vehicle.

At the end of the day on January 3, 2022, the Digital Large Cap Fund’s Fund Components were a basket of Bitcoin, Ethereum, Solana, Cardano, Uniswap, Chainlink, Litecoin, and Bitcoin Cash in weightings in that order. Bitcoin forms the majority with around 60%.

Fund components distributed to cover ongoing expenses

Neither the Digital Large Cap Fund nor the DeFi Fund generates any income. Both distribute fund components on a regular basis to cover ongoing expenses. With time, the amount of Fund Components represented by shares of each fund gradually declines.  

Daniela Kirova

Daniela Kirova

Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.