The largest digital currency asset manager in terms of assets under management (AUM), Grayscale Investments, has announced the launch of a smart contract fund that is compiled of ethereum competitors. The fund called “GSCPxE” holds seven different smart contract coins and it’s Grayscale’s 18th investment product to date.
Grayscale launches GSCPxE — The fund contains Cardano, Solana, Avalanche, Polkadot, Polygon, Algorand, Stellar
Grayscale Investments has announced another fund that spans the smart contract token landscape, but leaves the larger ethereum (ETH) smart contract token out of the equation. The new Grayscale fund is called the “Smart Contract Platform Ex-Ethereum Fund” or “GSCPxE”. Essentially, smart contracts allow users to program operations on blockchains and data shows that the market value of all coins on the smart contract platform today is $669 billion. Of course, Ethereum (ETH) is the largest smart contract platform coin, as its market capitalization of $360 billion represents 53.81% of the entire $669 billion.
Grayscale’s announcement on Tuesday notes that there are seven smart contract platform coins in the fund. The tokens added to the GSCPxE fund include cardano (ADA), 24.63%, solana (SOL), 24.27%, avalanche (AVAX), 16.96%, polkadot (DOT), 16.16%, polygon (MATIC), 9.65%, algorand (ALGO), 4.27%, and stellar (XLM), 4.06%. While GSCPxE is the company’s 18th investment product, the Smart Contract Platform Ex-Ethereum Fund is also Grayscale’s third diversified fund offering.
Grayscale CEO: “Investor demand for diversified exposure has increased”
The digital currency asset manager says the fund is now open to eligible retail and accredited institutional investors. Regarding the current fractions of the smart contract platform coins, Grayscale also reveals that the holdings and weightings may change. GSCPxE will also leverage the Coindesk Smart Contract Platform Select Ex ETH Index, Grayscale announced on Tuesday. Grayscale CEO Michael Sonnenshein detailed in a statement sent to Bitcoin.com News on Tuesday that digital currency diversification has increased.
“Investor demand for diversified exposure has grown in parallel to the ongoing evolution of the crypto ecosystem,” Sonnenshein explained. “Smart contract technology is critical to the growth of the digital economy, but it’s still too early to know which platform will win – from attracting and retaining the most vibrant developer communities, to ensuring the platform is high-speed, flexible, and scalable. The beauty of GSCPxE is that investors do not have to choose one winner, and instead can access the development of the smart contract platform ecosystem through a singular investment vehicle,” Grayscale’s CEO added.
Grayscale’s new GSCPxE follows the company’s idea to add 25 more crypto assets for investment products at the end of January. The digital currency asset manager’s current AUM with all of its investment products is worth nearly $40 billion using current cryptocurrency exchange rates. Additionally, the digital currency manager launched the Grayscale Future of Finance ETF (GFOF) with Bloomberg in the first week of February.
During the GSCPxE fund announcement, Jodie Gunzberg, the CFA and managing director at Coindesk Indices, further highlighted that demand for digital currency diversification is on the rise. “Many investors allocated to ETH given its explosive growth over the past year, so now there is demand to get exposure across the rest of the Smart Contract Platform sector,” Gunzberg said.
