Michael Sonnenshein, the CEO of digital asset management giant Grayscale, has announced a new investment vehicle aimed at decentralized financial assets (DeFi).
Grayscale Eyes DeFi
Grayscale, the world’s largest crypto asset manager, is expanding its crypto product offering with the launch of its new Defi Fund, which is the firm’s first of its kind. The crypto asset management is well-known for its investment funds in Bitcoin and other altcoins, but this would be their first foray into the thriving DeFi industry.
Sonnenshein announced Grayscale’s planned DeFi Fund and Index during an appearance on CBNC’s Squawk Box.
The Grayscale Defi Fund would be the company’s second diversified fund product. The new fund would be based on the Coindex Defi Index, which is made up of:
- Uniswap (UNI), 49.95%
- Aave (AAVE), 10.25%
- Compound (COMP), 8.38%
- Curve (CRV), 7.44%
- MakerDAO (MKR), 6.49%
- SushiSwap (SUSHI), 4.83%
- Synthetix (SNX), 4.43%
- Yearn Finance (YFI), 3.31%
- UMA Protocol (UMA), 2.93%
- Bancor Network Token (BNT), 2.00%
Accredited investors can gain exposure to the major Defi market through this vehicle. Eligible investors can subscribe to the funds on a daily basis. The funds’ shares would be listed on a secondary market. Grayscale will produce its sixteenth overall investment product.
Grayscale Investments CEO Michael Sonnenshein said,
“Grayscale continues to focus on creating opportunities for investors to access new, exciting parts of the digital asset ecosystem. The emergence of decentralized finance protocols provide clear examples of technologies that can redefine the future of the financial services industry. We’re proud to offer investors exposure to DeFi through Grayscale’s trusted, secure, and industry-leading investment product structures.”
Related article | BNY Mellon Partners With Grayscale Investments Service GBTC and Its Bitcoin ETF
Grayscale Continues Crypto Expansion
In the absence of a regulated investment product, Grayscale has become a go-to investing choice for a number of institutional investors. The digital asset manager is trying to turn its main investment product, the Grayscale Bitcoin Trust, into a Bitcoin ETF in the near future, and CEO Sonnenshein believes approval will come “when,” not “if.” Despite the present delays, he believes the SEC will eventually approve the Bitcoin ETF.
The US Securities and Exchange Commission (SEC) has delayed its judgment on three Bitcoin ETFs until today, and numerous more are awaiting approval. In 2017-18, the US Securities and Exchange Commission (SEC) rejected all ETF proposals due to a lack of market size. Grayscale just received its third SEC approval for its $GDLC fund, giving it its third SEC reporting product.
GBTC is one of the most popular Bitcoin Trust. Source: TradingView
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Featured image from UnSplash, charts from TradingView
