Investment manager Grayscale is embarking on another phase of balancing its Grayscale DeFi fund. This rebalancing cycle instills the adjustment of the project’s large-cap digital funds. The move marks its second balancing process after launching in July 2021.
A Jan. 3 announcement revealed the in-depth adjustments to Grayscale’s two funds. The first rebalance used the native collateral coin of the Flexa payment network.
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Therefore, the weighting of Grayscale DeFi Fund has been rebalanced with the addition of AMP. Conversely, the rebalancing process led to the abolition of universal market access (UMA) and Bancor (BNT).
Although Grayscale has made some adjustments to the weighting of its funds, the Grayscale Digital Large Cap Fund (GDLC) has not undergone any changes to its token list. According to Grayscale’s announcement, the rebalancing process is the time to include AMP in a Grayscale investment vehicle.
Using its native token, Flexa can secure crypto payments and engage in fiduciary settlements. Thus, traders and other users could quickly receive cryptocurrencies without delays.
Importance of the grayscale rebalancing process
As a result of this second rebalancing process, the addition of AMP brings to nine the number of crypto assets within the Grayscale DeFi Fund in the DeFi ecosystem. Additionally, the change to the Grayscale Fund reflects the changes to CoinDesk’s DeFi Index (DFX). Among the components of the crypto assets that make up the Fund, the highest weighting goes to Uniswap (UNI) with 42.33%. The newly added AMP represents 7.39% of the Fund’s weighting.
Having its popularity as the Grayscale Bitcoin Trust, Grayscale now has approximately $ 30.1 billion in assets under management (AUM). The stock trading at $ 34.27 shows a rise of 23% from July 14, 2021 and 59.16% in the past 12 months.
The Grayscale DeFi Fund share price at time of posting is $ 5.56. This represents an increase of 11.2% from its launch price of $ 5 on July 14, 2021. In addition, the Fund’s assets under management at the time of its launch period were $ 11.6 million. with an outstanding share of 2.08 million.
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The performance of Grayscale Bitcoin Trust and its DeFi funds is well above the DeFi Pulse Index (DPI), which is the largest retail DeFi index based on market capitalization as of July 14. However, despite the massive transaction volume of DPI, it still shows a decline of around 2% in the same interval.
Of all the ETFs and Bitcoin spot companies, Grayscale had the largest increase in BTC holdings through 2021. By the end of the year, the Fund had accumulated 645,199 BTC. This explains 71% of the corporate market and ETF BTC spot holdings.
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