Grayscale Investments is the largest digital currency asset manager (AUM) and has launched a smart contract fund made up of ethereum rivals. The fund called “GSCPxE” holds seven different smart contract coins and it’s Grayscale’s 18th investment product to date.
Grayscale Launches GSCPxE — Solana Fund, Solana, Avalanche Polkadot Polygon, Algorand Stellar
Grayscale Investments announced a new fund to cover the smart contract token landscape, while leaving out the most important smart contract token (ETH). 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. As its $360 billion market capital represents 53.81%, Ethereum (ETH) is by far the biggest smart contract platform coin.
Grayscale’s announcement on Tuesday notes that there are seven smart contract platform coins in the fund. Tokens that were added to the GSCPxE Fund include: cardano (ADA), 24.63%; solana (SOL), 24.27%; 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’
Digital currency manager Grayscale says that the fund is open now to all eligible investors as well as institutional accredited buyers. Grayscale has also disclosed that current holdings and weightings for smart contract platform coins can be changed. 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. In February, the digital currency manager introduced the Grayscale Future of Finance ETF(GFOF), which was launched with Bloomberg.
Jodie Gunzberg from Coindesk Indices was the CFA and managing Director of the GSCPxE Fund. She also highlighted the increasing demand for cryptocurrency diversification during the announcement. “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.
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