Grayscale, a prominent crypto asset management fund has updated its Fund component weightings for each product, as per an announcement made on Tuesday. This was a part of the fund’s quarterly review and saw the addition and subtraction of many projects in its DeFi funds.
Who made and who was left out?
Owned by Digital Currency Group, Grayscale adjusted the decentralized finance [DeFi] Fund’s portfolio by selling specific amounts of the existing fund components. This was done in proportion to their respective weightings.
During this rebalancing, the firm announced removing Bancor [BNT] and Universal Market Access [UMA] from the index, meanwhile adding AMP using the cash proceeds.
Bancor accounted for 2% of the index at the time of its launch, meanwhile, UMA assumed 2.9%.
The official announcement noted,
“In accordance with the CoinDesk DeFi Index methodology, Grayscale has adjusted the DeFi Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective 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 CoinDesk DeFi Index and the DeFi Fund.”
Grayscale launched the fund and the indexes in July 2021 to offer institutional investors exposure to the crypto market without requiring tokens custody. Ever since the fund has reviewed the assets beneficial for its clients.
As for the newly added AMP token which is used within the Flexa Network, it will make up 7.39% of the fund. Flexa was a payment network that allows crypto-collateralized payments at physical stores and online. It uses AMP to collateralize digital asset payments while they are confirmed on their respective blockchains and settles the payments in fiat to the recipient. Merchants can accept Bitcoin, Ethereum, and other digital assets as payments using the network.
As per Grayscale, “Flexa network is one of a number of projects intended to accelerate the development of the blockchain into a mature peer-to-peer money system.”
Additionally, the fund also included Uniswap and Aave, making up 42.33% and 13.06% of the index.