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Grayscale Investments Launches Smart Contract-Focused Diversified Fund

Grayscale Investments Launches Smart Contract-Focused Diversified Fund

The largest digital currency asset manager in terms of assets under management (AUM), Grayscale Investments, has announced the launch of a smart contract fund that is compiled of ethereum competitors. The fund called “GSCPxE” holds seven different smart contract coins and it’s Grayscale’s 18th investment product to date.

Grayscale Launches GSCPxE Fund Holds Cardano, Solana, Avalanche, Polkadot, Polygon, Algorand, Stellar

Grayscale Investments has announced another fund that covers the landscape of smart contract tokens, but leaves the largest smart contract token ethereum (ETH) out of the equation. The new Grayscale fund is called the “Smart Contract Platform Ex-Ethereum Fund” or “GSCPxE.” Essentially, smart contracts allow users to program operations on blockchains and data shows the market valuation of all the smart contract platform coins today is $669 billion. Of course, ethereum (ETH) is the largest smart contract platform coin, as its market cap of $360 billion represents 53.81% of the entire $669 billion.

Grayscale’s announcement on Tuesday notes that there are seven smart contract platform coins in the fund. The tokens added to the GSCPxE fund include cardano (ADA), 24.63%, solana (SOL), 24.27%, avalanche (AVAX), 16.96%, polkadot (DOT), 16.16%, polygon (MATIC), 9.65%, algorand (ALGO), 4.27%, and stellar (XLM), 4.06%. While GSCPxE is the company’s 18th investment product, the Smart Contract Platform Ex-Ethereum Fund is also Grayscale’s third diversified fund offering.

Grayscale CEO: ‘Investor Demand for Diversified Exposure Has Grown’

The digital currency asset manager says the fund is now open to eligible individuals and institutional accredited investors. In terms of the current fractions of smart contract platform coins, Grayscale also discloses that the holdings and weightings can change. GSCPxE will also leverage the Coindesk Smart Contract Platform Select Ex ETH Index, Grayscale’s announcement on Tuesday details. Grayscale’s CEO Michael Sonnenshein detailed on Tuesday in a statement sent to Bitcoin.com News that digital currency diversification has been growing.

“Investor demand for diversified exposure has grown in parallel to the ongoing evolution of the crypto ecosystem,” Sonnenshein explained. “Smart contract technology is critical to the growth of the digital economy, but it’s still too early to know which platform will win – from attracting and retaining the most vibrant developer communities, to ensuring the platform is high-speed, flexible, and scalable. The beauty of GSCPxE is that investors do not have to choose one winner, and instead can access the development of the smart contract platform ecosystem through a singular investment vehicle,” Grayscale’s CEO added.

Grayscale’s new GSCPxE follows the company’s consideration of adding 25 more crypto assets for investment products at the end of January. The digital currency asset manager’s current AUM with all of its investment products is worth close to $40 billion using today’s cryptocurrency exchange rates. Additionally, the digital currency manager launched the Grayscale Future of Finance ETF (GFOF) with Bloomberg during the first week of February.

During the GSCPxE fund announcement, Jodie Gunzberg, the CFA and managing director at Coindesk Indices, further highlighted that demand for digital currency diversification is on the rise. “Many investors allocated to ETH given its explosive growth over the past year, so now there is demand to get exposure across the rest of the Smart Contract Platform sector,” Gunzberg said.

What do you think about the Grayscale Smart Contract Platform Ex-Ethereum Fund? Let us know what you think about this subject in the comments section below.



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