In terms of the value of assets under management (AUM), Grayscale Investments is the largest digital currency asset, manager. It has now announced that it is introducing a smart contract fund that comprises of competitors of Ethereum (ETH). There are seven different smart contract coins in the fund, which has been named ‘GSCPxE’ and it is the 18th investment product that the asset management firm has launched up till now. It is important to note that while the fund is spread out across the landscape of smart contract tokens, it excludes the largest smart contract token out of the equation i.e. ether (ETH).
Therefore, it is named as the ‘Smart Contract Platform Ex-Ethereum Fund’. To put it simply, smart contracts can be used for programming blockchains by the users and the market valuation of all the smart contract coins that exist today is worth $669 billion. The largest smart contract platform is none other than Ethereumbecause it has a market capitalization of $360 million. This is about 53.81% of the total valuation of smart contracts platforms. The announcement by Grayscale on Tuesday shows that it has chosen to add seven smart contract tokens to its fund. The coins that are included are 4.06% stellar (XLM), 4.27% algorand (ALGO), 9.65% polygon (MATIC), 16.16% polkadot (DOT), 16.96% avalanche (AVAX), 24.27% Solana (SOL) and 24.63% Cardano (ADA).
It is the 18th investment product to have been introduced by Grayscale, but it is also important to note that it is the third diversified fund offering to have been launched. According to the digital asset management company, the fund is open to institutional accredited investors and eligible individuals. Moreover, while Grayscale has disclosed the existing fractions of the respective smart contract coins, it has added that the weightings and holdings can change. The announcement from Grayscale also revealed that the fund would use the Coindesk Smart Contract Platform Elect Ex ETH Index.
Michael Sonnenshein, the chief executive of Grayscale, said on Tuesday that there has been an increase in digital currency diversification. The CEO said that the crypto ecosystem’s ongoing evolution has resulted in the increase in demand for diversified exposure. He said that while the growth of the digital economy relies significantly on smart contract technology, it was still too early to determine which platform would emerge as the winner. This would be in terms of scalability, flexibility, the high-speed of the platform as well as retaining and attracting strong developer communities.
According to Grayscale’s CEO, the good thing about their GSCPxE fund is that people don’t have to go with just one winner. Instead, the fund provides them with the opportunity of using a single investment vehicle for accessing the development of the entire smart contract ecosystem. The introduction of this fund comes after the company added 25 more crypto assets at the end of January to its investment products. The total AUM of the asset manager is close to $40 billion. In the first week of February, Grayscale had also launched an ETF with Bloomberg named Grayscale Future of Finance ETF (GFOF).