Grayscale To Launch Its First DeFi Fund

Grayscale is the world’s largest crypto asset manager. It has started to expand its crypto product offering. The CEO of digital asset management giant, Michael Sonnenshein, has recently announced that they are offering a new investment vehicle particularly aimed at decentralized financial assets (DeFi).

Grayscale Has Set Its Eyes On DeFi Now

One of the largest cryptocurrency asset management companies, Grayscale has expanded its supply of cryptocurrency products by launching the new DeFi funds. Besides, it is the firm’s first such product ever. Crypto Asset Management is insanely famous for its Bitcoin and other altcoin hedge funds, but this will be your first foray into the booming DeFi industry. The CEO further disclosed during an appearance on CNBC’s Squawk Box that the company has been planning about DeFi Fund and Index. This DeFi fund from the company is on the verge of becoming Grayscale’s second diversified fund product. In addition, this new product is solely based on the Coindex Defi Index. The index is made up of these platforms:

  1. Uniswap (UNI), 49.95%
  2. Aave (AAVE), 10.25%
  3. Compound (COMP), 8.38%
  4. Curve (CRV), 7.44%
  5. MakerDAO (MKR), 6.49%
  6. SushiSwap (SUSHI), 4.83%
  7. Synthetix (SNX), 4.43%
  8. Yearn Finance (YFI), 3.31%
  9. UMA Protocol (UMA), 2.93%
  10. Bancor Network Token (BNT), 2.00%

Accredited investors can enter Defi’s main market through this mechanism. All eligible investors can subscribe to the fund every day. The fund’s share will be soon listed in the secondary market. The company will release its 16th global investment product. Additionally, Michael Sonnenshein also stated that “Grayscale continues to focus on creating opportunities for investors to access new, exciting parts of the digital asset ecosystem. The emergence of decentralized finance protocols provides clear examples of technologies that can redefine the future of the financial services industry. We’re proud to offer investors exposure to DeFi through Grayscale’s trusted, secure, and industry-leading investment product structures.”

The Company Still Continues To Expand In Crypto

There aren’t many reliable regulated investment products available in the market. This proves to be an amazing opportunity for Grayscale as it has thus become an investment choice for various institutional investors. The digital asset management company plans to convert its main investment product Grayscale Bitcoin Trust into a Bitcoin ETF in the coming future. The CEO also firmly believes that it won’t take long for the approval to come.

Moreover, even after considering the existing delays, the US Securities and Exchange Commission will gradually approve the Bitcoin ETF. The SEC has postponed the decision of three Bitcoin ETFs to today. Also, there are more Bitcoin ETFs that are waiting for approval. In the years 2017 and 2018, the SEC rejected all ETF offers on the grounds of insufficient market size. Grayscale has recently received its third SEC approval for its $GDLC fund thus providing the company with its third SEC reporting product.