Grayscale turns to DeFi
The asset manager confirmed the news in a message sent to its users last night. Michael Sonnenshein, Grayscale’s CEO, had already announced the move into DeFi in an interview with Squawk Box.
The goal is to offer exposure to decentralized finance projects through a single investment protocol: the Grayscale DeFi Fund. The company points out that applications in the DeFi sector have seen their total locked-in value (TVL) explode to $55 billionin the past year. That’s a 20-fold increase from June 2020.
10 DeFi tokens for Grayscale’s fund
Grayscale reveals the composition of its fund, which includes 10 tokens ” encompassing several use cases for these applications, such as DEX, lending services, derivatives and asset managers.”
Uniswap (UNI), Aave (AAVE), Compound (COMP), Curve (CRV) and MakerDAO (MKR) are the 5 projects that weigh the most in the fund. In particular UniSwap, which alone accounts for almost half of Grayscale’s DeFi fund:
The news of course has significance for the cryptocurrency markets as a whole, beyond the company’s customers. Grayscale provides services to institutional investors, who have real clout in the markets. Their endorsement can therefore have a non-negligible effect on cryptocurrency prices.
In any case, the asset manager seems to be accelerating the diversification of its services. In June, it had announced that it was considering adding 13 new crypto-currencies to its trusts. At present, the company’s funds under management amount to $27.3 billion.
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About the author : Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that come from blockchain and I love digging up the most juicy news to share with you.
All articles by Marine Debelloir.