DeFi Fund and Solana, a smart contract platform, have announced a quarterly rebalancing of funds. The Grayscale Digital Large Cap Fund has also added Uniswap, a decentralized exchange.
Grayscale DeFi Fund (OTCQX: GDLC) and Grayscale Digital Large Cap Fund (OTCQX: GDLC). The world’s leading digital currency asset manager, today announced amended Fund Component weightings. For each product in conjunction with their respective quarterly reviews.
Grayscale has changed the Digital Large Cap Fund’s portfolio in compliance with the fund’s construction criteria. By selling specified quantities of existing Fund Components in proportion to their respective weightings. And utilizing the proceeds to purchase Solana (SOL) and Uniswap (UNI). Grayscale updated the Digital Large Cap Fund’s portfolio and purchased Cardano (ADA) in July 2021. And this is the first time Solana (SOL) will be included in a Grayscale investment vehicle.
A native coin of the Solana network, which is a smart contract platform first developed by Anatoly Yakovenko. In a whitepaper published in 2017, SOL is the native token of the Solana network. The Solana network, like the Ethereum network, is one of a number of initiatives. That also aims to expand the usage of blockchain technology beyond its traditional role.
As a peer-to-peer money system. For example, the Solana protocol pioneered a Proof-of-History (PoH) consensus mechanism. As a viable alternative to traditional proof-of-stake (PoS) and proof-of-work (PoW) blockchains. Such as Ethereum, which was previously available.
It expected that PoH networks outperform traditional PoW and PoS networks in terms of transactions. In which processing speed and capacity. PoW and PoS networks, on the other hand, rely on sequential block production. And can experience delays as a result of validator confirmations.
UNI is the native token of the Uniswap network. It decentralized exchange that originally conceived in 2016 by Vitalek Buterin, the creator of Ethereum. And later developed by Hayden Adams and Uniswap Labs in 2018. UNI is a cryptocurrency that was introduced in 2016 by Vitalek Buterin, the creator of Ethereum. Trading digital assets without the use of a central order book made possible by aggregating digital assets. Trading pairings through the use of smart contracts.
Users on Uniswap exchange digital assets with one another in exchange for a transaction fee paid. To independent market makers known as liquidity providers, who facilitate the exchange. Holders of UNI have also the power to propose and vote on improvements to the Uniswap network. Which will allow the network’s functionality to adjusted.
About Grayscale Digital Large Cap Fund
The Grayscale Digital Large Cap Fund allows investors to invest in a market-cap. A weighted portfolio of large-cap digital currencies without the hassle of buying them. Also storing and safeguarding them directly. The Digital Large Cap Fund targets coverage of the top 70% of the digital currency market. And re-evaluated quarterly; however, the weightings of each Fund Component. Fluctuate daily and announced around 4:00 p.m. NY-time.
Investment objective: The value of fund components owned by the Digital Large Cap Fund, less expenditures and other liabilities. Aside from not meeting its investment objective. The OTCQX-listed shares do not reflect the value of the fund components held by the Digital Large Cap Fund. Minus the Digital Large Cap Fund’s expenses and other liabilities. But they have traded at both premiums and discounts for such value.
With shares named in the investor’s name. The Digital Large Cap Fund is easily transferable to beneficiaries under estate rules. Shares may also be kept in certain IRA, Roth IRA, brokerage, and investor accounts.
About Grayscale DeFi Fund
The Grayscale Decentralized Finance (DeFi) Fund owns the CoinDesk DeFi Index. These digital assets are also from the DeFi universe of investable digital assets. The Index methodology includes market cap-weighted liquid DeFi assets and re-evaluated quarterly.
Grayscale also aims to try to sell secondary market shares in this new product. But there’s no certainty. Although certain goods’ shares have been allowed for secondary market trading. Investors in this new product should not assume that the shares will ever be approved due to concerns raised by regulators. Including the SEC, FINRA, and others. As a result, investors in this product should be prepared to hold their shares indefinitely.