Gray balance MATIC goes down, AVAX, XRP rebalancing increases
Asset manager Greyscale adjusted the weightings for the three crypto funds, removing tokens such as Polygon (MATIC), Avalanche (AVAX) and XRP (XRP), as announced on January 5.
The new allocations are part of Greyscale's quarterly review and impact Digital Large Cap Fund (GDLC), DeFi Fund (DEFG) and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).
According to the updated composition of the digital large-cap fund, Bitcoin (BTC) is allocated 69.15%, Ether (ETH) 21.90%, Solana (SOL) 3.65%, XRP 2.54%, Cardano (ADA) at 1.62% and AVAX at 1.14% of the fund. Due to rebalancing, MATIC has been removed from GDLC.
As for Greyscale's DeFi fund, among the changes is the removal of the Curve DAO (CRV) token from the portfolio. The new basket is formed by Uniswap (UNI) at 41.11%, Lido (LDO) at 23.90%, MakerDAO (MKR) at 13.39%, Aave (AAVE) at 12.63% and Synthetix (SNX) at 8.97%.
Despite being dropped from one of the portfolios, MATIC is still included in the GSCPxE fund, in which no tokens are added or removed. The updated composition of the fund includes SOL at 44.54%, ADA at 19.77%, AVAX at 13.89%, Polkadot (DOT) at 9.75%, MATIC at 8.25%, and Cosmos (ATOM) at 3.80%.
The fund managers regularly review and adjust the weightings to optimize the fund's performance based on current market conditions, risk assessments and investment objectives. This process is usually done every quarter.
Grayscale uses the CoinDesk DeFi Select Index methodology to determine the fund's benchmarks. Funds like DeFi funds designed to expose decentralized financial markets have been negatively impacted by the crypto winter. At the time of writing, the shares were trading at $22, down 9.28% in the last 24 hours.
One of the companies seeking regulatory approval for a crypto asset manager is a Bitcoin Exchange-Traded Fund (ETF) in the United States, converting to an over-the-counter (Grayscale Bitcoin Trust) listed BTC ETF. The SEC is expected to announce a decision on January 10.
Magazine: Diffie's Billion Dollar Secret: Insiders Responsible for Hacking
