Grayscale® DeFi Fund and Grayscale® Digital Large Cap Fund Announce Quarterly Rebalancing of Funds
01/03/2022 | 06:42pm EDT
New York, Jan. 03, 2022 (GLOBE NEWSWIRE) -- Grayscale Investments®, the world’s largest digital currency asset manager, and manager of both Grayscale® DeFi Fund (the DeFi Fund) and Grayscale® Digital Large Cap Fund (OTCQX: GDLC) (the Digital Large Cap Fund), today announced the updated Fund Component weightings for each product in connection with their respective quarterly reviews.
In accordance with the CoinDesk DeFi Index methodology, Grayscale has adjusted the DeFi Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase Amp (AMP). As a result of the rebalancing, Bancor (BNT) and Universal Market Access (UMA) have been removed from the CoinDesk DeFi Index and the DeFi Fund.
AMP is the native token of the Flexa network, a payment network which enables crypto-collateralized payments at physical stores and online. Flexa uses the AMP token to collateralize digital asset payments while they are confirmed on their respective blockchains and settles the payments in fiat to the recipient. By enabling payments through the Flexa network, supporting merchants can more easily and trustlessly accept payment in BTC, ETH, and other digital assets. The Flexa network is one of a number of projects intended to accelerate the development of the blockchain into a mature peer-to-peer money system.
At the end of the day on January 3, 2022, the DeFi Fund’s Fund Components were a basket of the following assets and weightings.
Uniswap (UNI), 42.33%
Aave (AAVE), 13.06%
Curve (CRV), 10.63%
MakerDAO (MKR), 8.99%
Amp (AMP), 7.39%
Yearn Finance (YFI), 6.34%
Compound (COMP), 5.02%
Synthetix (SNX), 3.15%
SushiSwap (SUSHI), 3.09%
No new tokens were added or removed from Grayscale Digital Large Cap Fund. This announcement follows the October 2021 news that Grayscale adjusted the Digital Large Cap Fund’s portfolio and added Solana (SOL) and Uniswap (UNI). At the end of the day on January 3, 2022, the Digital Large Cap Fund’s Fund Components were a basket of the following assets and weightings.
Bitcoin (BTC), 60.50%
Ethereum (ETH), 30.13%
Solana (SOL), 3.56%
Cardano (ADA), 3.05%
Uniswap (UNI), 0.77%
Chainlink (LINK), 0.71%
Litecoin (LTC), 0.69%
Bitcoin Cash (BCH), 0.59%
Neither the DeFi Fund nor the Digital Large Cap Fund generates any income, and both regularly distribute Fund Components to pay for ongoing expenses. Therefore, the amount of Fund Components represented by shares of each fund gradually decreases over time.
This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About Grayscale® DeFi Fund Grayscale Decentralized Finance (DeFi) Fund holds digital assets that make up the CoinDesk DeFi Index. These digital assets are drawn from the universe of investable digital assets native to decentralized finance or DeFi. The CoinDesk Defi Index includes liquid DeFi assets on a market cap-weighted basis and is re-evaluated each quarter; however, the weightings of each Fund Component change daily and are published around 4:00 p.m. NY-time.* Additional information on the CoinDesk DeFi Index methodology can be found at https://tradeblock.com/markets/dfx/.
Grayscale intends to attempt to have shares of this new product quoted on a secondary market. However, there is no guarantee this will be successful. Although the shares of certain products have been approved for trading on a secondary market, investors in this new product should not assume that the shares will ever obtain such an approval due to a variety of factors, including questions regulators such as the SEC, FINRA or other regulatory bodies may have regarding the product. As a result, shareholders of this product should be prepared to bear the risk of investment in the shares indefinitely.
About Grayscale® Digital Large Cap Fund Grayscale Digital Large Cap Fund enables investors to gain exposure to a market-cap weighted portfolio of large-cap digital currencies through a singular investment vehicle without the challenges of buying, storing, and safekeeping digital currencies directly. Through a rules-based portfolio construction methodology derived from the CoinDesk Large Cap Index, the Digital Large Cap Fund targets coverage of the upper 70% of the digital currency market and is re-evaluated each quarter; however, the weightings of each Fund Component change daily and are published around 4:00 p.m. NY-time.* Additional information on the Index methodology can be found at: https://tradeblock.com/markets/dlcx.
The Digital Large Cap Fund's investment objective is for its Shares to reflect the value of Fund Components held by the Digital Large Cap Fund, less its expenses and other liabilities. To date, the Digital Large Cap Fund has not met its investment objective and the Shares quoted on OTCQX have not reflected the value of Fund Components held by the Digital Large Cap Fund, less the Digital Large Cap Fund's expenses and other liabilities, but instead have traded at both premiums and discounts to such value, with variations that have at time been substantial.
*The compositions of the Digital Large Cap Fund and the DeFi Fund are evaluated on a quarterly basis to remove existing Fund Components or to include new Fund Components in their portfolios, in accordance with the Construction Criteria established by Grayscale or the Index Provider, as applicable.
About Grayscale Investments® Founded in 2013, Grayscale Investments is the world’s largest digital currency asset manager, with more than $43.6B in assets under management as of December 31, 2021. Through its family of investment products, Grayscale provides access and exposure to the digital currency asset class in the form of a security without the challenges of buying, storing, and safekeeping digital currencies directly. With a proven track record and unrivaled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. Grayscale products are distributed by Genesis Global Trading, Inc. (Member FINRA/SIPC, MSRB Registered). For more information, please visit grayscale.com and follow @Grayscale.