Asset manager Grayscale has rebalanced weights for three of its crypto funds, removing tokens such as Polygon’s (MATIC) and adding Avalanche (AVAX) and XRP (XRP), according to an announcement on Jan. 5.
The new allocations are part of Grayscale’s quarterly review and impact its Digital Large Cap Fund (GDLC), DeFi Fund and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).
The revised composition of the Digital Large Cap Fund is as follows: Bitcoin (BTC) (69.15%), Ether (ETH) (21.90%), Solana’s (SOL) (3.65%), XRP (2.54%), Cardano’s (ADA) (1.62%) and AVAX (1.14%). As a result of the rebalancing, MATIC was removed from GDLC.
As for Grayscale’s DeFi Fund, among the changes is the removal of the Curve DAO (CRV) token from the portfolio. The new basket comprises Uniswap (UNI) (41.11%), Lido DAO (LDO) (23.90%), MakerDAO (MKR) (13.39%), Aave (AAVE) (12.63%) and Synthetix (SNX) (8.97%).
Though dropped from one of the portfolios, MATIC is still included in the GSCPxE Fund, in which no tokens have been added or removed. The fund’s updated composition consists of SOL (44.54%), ADA (19.77%), AVAX (13.89%), Polkadot (DOT) (9.75%), MATIC (8.25%) and Cosmos (ATOM) (3.80%).
Fund managers periodically review and adjust the weightings to optimize the fund’s performance according to the prevailing market conditions, risk assessments and investment objectives. This process is often done quarterly.
Grayscale uses CoinDesk DeFi Select Index methodology to determine its funds’ benchmarks. Funds such as its DeFi Fund — designed to offer exposure to decentralized financial markets — have been negatively impacted by the crypto winter. At the time of writing, its shares traded at $22, down 9.28% over the past 24 hours.
The crypto asset manager is one of the companies seeking regulatory approval for a spot Bitcoin exchange-traded fund in the United States through the conversion of its over-the-counter Grayscale Bitcoin Trust into a listed BTC ETF. The SEC is expected to announce a decision on Jan. 10.
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