Grayscale Modifies Q4 Funds by Including Altcoins for DeFi, AI, and Other Uses

The modifications, which modify the company’s assets according to performance and market circumstances, are a part of its quarterly review process.

One of the most prominent administrators of cryptocurrency assets, Grayscale Investments, has made major changes to its investment funds in anticipation of the new year.

The Grayscale Decentralized AI Fund, Decentralized Finance Fund, Digital Large Cap Fund (GDLC Fund), and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund) are its four primary funds that are impacted by these developments. The firm’s portfolio evaluation from Q4 2024 served as the basis for these changes.

Grayscale added additional tokens including Livepeer (LPT), a project aimed at decentralizing video streaming, along with NEAR Protocol, Render, Bittensor, Filecoin, and The Graph to its AI Fund and conducted selected asset sales. With these changes, the fund’s exposure to decentralized AI technologies—a rapidly developing field in the cryptocurrency space—will be diversified.

Curve Finance, one of the biggest and most inventive decentralized exchange protocols, was used by Grayscale in lieu of Synthetix for the DeFi Fund. Key assets including Uniswap, Aave, Lido, MakerDAO, and Curve are now part of the fund as a consequence. At 47.88%, Uniswap continues to be the fund’s top investment, followed by Curve at 6.71%.

Avalanche was replaced by Cardano in the GDLC Fund, which also underwent a significant change. These days, the fund consists of Bitcoin, Ethereum, Solana, XRP, and Cardano. Bitcoin makes up the majority of the portfolio (73.52%), while Cardano only makes up 1.44%.

With the addition of SUI and adjustments to its holdings of Solana, Cardano, Avalanche, Sui, NEAR Protocol, and Polkadot, the GSCPxE Fund was also rebalanced in the meantime. This brought the portfolio into line with the fund’s strategy to take advantage of new opportunities in the cryptocurrency space and satisfy investor demands for high-potential assets.

According to Grayscale, these funds don’t make money directly; instead, they disperse assets on a monthly basis to pay for operational costs. As a result, each fund’s overall holdings gradually decline. Based on asset performance and market assessments, the rebalancing procedure takes place every three months.

Grayscale also highlighted its continued interest on finding new cryptocurrencies in October 2024 when it revealed it was investigating 35 altcoins for possible inclusion in its products. By swiftly adjusting to new market trends and possibilities, the business maintains its leadership in the cryptocurrency investing space with these upgrades.
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