Grayscale Investments Adjusts Portfolios of Four of Its Crypto Investment Funds

Asset management giant Grayscale has updated the portfolios of four of its crypto investment funds.

The Grayscale Decentralized AI Fund (AI Fund), Grayscale Decentralized Finance Fund (DeFi Fund), Grayscale Digital Large Cap Fund (GDLC Fund), and Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund) all had their portfolios adjusted.

Grayscale Updates Fund Portfolios

Grayscale updates the portfolios of its multi-asset funds on a quarterly basis. The updates are made following reviews in Q4.

“We rebalanced and updated the components of our 4 multi-asset funds, Grayscale Decentralized AI Fund, DEFG, GDLC, and Grayscale Smart Contract Platform Ex-Ethereum Fund,” Grayscale announced in a tweet on January 9.

The Grayscale funds are often used by the community as a reference point for building their own portfolios. This is because the funds are professionally managed and provide a diversified exposure to a range of crypto assets.

For the AI Fund, Grayscale has rebalanced the portfolio by selling off some of the existing assets and using the proceeds to purchase Livepeer (LPT) and other coins.

The adjustment adds LPT to the portfolio, which also includes NEAR Protocol, Render, Bittensor, Filecoin, and The Graph.

Grayscale’s DeFi Fund also saw a rebalancing, with Synthetix being sold and Curve being added. The updated portfolio features assets such as Uniswap, Aave, Lido, MakerDAO, and Curve.

Uniswap accounts for about 47.88% of the fund, while Curve makes up 6.71%.

The Digital Large Cap Fund (GDLC) also experienced a shift. Grayscale sold Avalanche and used the funds to purchase Cardano. The fund now holds Bitcoin, Ethereum, Solana, XRP, and Cardano.

Bitcoin makes up the majority of the fund, with a 73.52% weightage, whereas Cardano accounts for only 1.44% of the fund.

Lastly, the GSCPxE Fund was also rebalanced, and SUI was added to replace some of the existing cryptocurrencies. The new structure includes Solana, Cardano, Avalanche, Sui, NEAR Protocol, and Polkadot.

Grayscale said the rebalances were made to ensure the funds remained in line with their respective strategies. Depending on the evaluation results, the changes are made every quarter.

However, the firm added that these funds do not generate income.

“None of AI Fund, DEFG, GDLC, or GSCPxE Fund generate any income, and all 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,” Grayscale added.

In October, Grayscale said it was considering 35 altcoins for inclusion in future investment products. The firm updated its investment strategy in September last year as well, as it identified the top 20 cryptos expected to give gains in Q4.