Grayscale Investments, a leading asset management company, has updated the portfolios of its four cryptocurrency investment funds.
Changes are made to Grayscale Decentralized AI Fund (AI Fund), Grayscale Decentralized Finance Fund (DeFi Fund), Grayscale Digital Large Cap Fund (GDLC Fund), and Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).
Grayscale Adjusts Portfolio
According to Grayscale, the updates reflect the company’s assessment for the fourth quarter of 2024.
“We have revised and updated the composition of four multi-asset funds, including Grayscale Decentralized AI Fund, DEFG, GDLC, and Grayscale Smart Contract Platform Ex-Ethereum Fund,” Grayscale speak in a January 9 tweet.
These adjustments are important because the community often looks to Grayscale funds as a reference point for building their portfolios.
As for the AI Fund, Grayscale adjusted by selling existing assets and using the proceeds to buy Livepeer and other coins. This change adds LPT to the portfolio, which also includes NEAR Protocol, Render, Bittensor, Filecoin, and The Graph.
Similarly, Grayscale’s DeFi Fund was also adjusted, with the sale of Synthetix and the addition of Curve. The updated portfolio includes Uniswap, Aave, Lido, MakerDAO, and Curve. Uniswap accounts for approximately 47.88% of the fund, while Curve accounts for 6.71%.
The Digital Large Cap Fund (GDLC) also has changes. Grayscale sold Avalanche and used the money to buy Cardano. The fund currently holds Bitcoin, Ethereum, Solana, XRP, and Cardano. Bitcoin makes up the largest portion of the fund, with a weighting of 73.52%, while Cardano only makes up 1.44% of the fund.
Finally, the GSCPxE Fund was also rebalanced, and SUI was added to replace several existing cryptocurrencies. The new structure includes Solana, Cardano, Avalanche, Sui, NEAR Protocol, and Polkadot.
Grayscale said the rebalancing was done to ensure the funds were aligned with their respective strategies. Depending on the results of the assessment, these changes are made quarterly.
However, the company added that these funds do not generate income.
“None of the AI Funds, DEFG, GDLC, or GSCPxE Funds generate any income, and all regularly distribute Fund Components to cover ongoing expenses. As a result, the amount of Fund Components represented by each fund’s holdings decreases over time,” Grayscale added.
Furthermore, in October 2024, Grayscale said it was considering 35 altcoins to add to its future investment products. The company also updated its investment strategy last September, identifying the top 20 cryptocurrencies expected to deliver returns in the fourth quarter.
