Removes BNT, UMA in Quarterly Rebalancing
The world’s largest digital asset manager announced the updated weightings on Monday, following the reconstitution of the CoinDesk Defi Index (DFX).
Grayscale Investments, which runs the Grayscale Defi Fund and Grayscale Digital Large Cap Fund, announced in a release on Monday updated fund component weightings for each product in connection with the funds’ quarterly reviews.
Rebalancing of the Grayscale Defi Fund followed the quarterly reconstitution of the CoinDesk Defi Index (DFX), which the fund tracks.
- New York-based Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.
- CoinDesk Indices launched the CoinDesk Defi Index (DFX) in July. The DFX output is available live on tradeblock.com, the website of CoinDesk Indices’ wholly-owned index calculation agent. At the same time, Grayscale announced the Grayscale Defi Fund.
- The DFX is a market-cap-weighted basket of cryptocurrencies, representing the Defi (decentralized finance) category, as defined in the CoinDesk Indices Digital Asset Classification Standard. Quarterly reconstitution of the DFX resulted in the removal of two cryptocurrencies and the addition of one. Universal market access (UMA) and bancor (BNT) were removed from the index, and Flexa’s amp (AMP) was added.
- Following the CoinDesk Defi Index reconstitution, Grayscale adjusted the Defi Fund’s portfolio by selling specific amounts of the existing fund components in proportion to their 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 Defi Fund.
- AMP is the native token of the Flexa network, a payment network that enables crypto-collateralized payments at physical stores and online.
- Flexa uses the AMP token to collateralize digital asset payments while confirmed on their blockchains and settles the payments in fiat to the recipient.
- By enabling payments through the Flexa network, supporting merchants can accept BTC, ETH, and other digital assets more quickly and confidently. According to Grayscale, the Flexa network is one of many projects intended to accelerate the development of the blockchain into a mature peer-to-peer money system.
Defi Fund’s components as of Monday:
On Monday, the Defi Fund’s Fund Components were a basket of the following assets and weightings at the end of the day.
- 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 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 Monday, the Digital Large Cap Fund’s 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 expenses. Therefore, the amount of fund components represented by shares of each fund gradually decreases over time.
Note: This article was updated to clarify the relationship between the CoinDesk Defi Index (DFX) and the Grayscale Defi Fund.
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