New fund from Grayscale focuses on Ethereum competitors
Grayscale, the asset manager specializing in cryptocurrencies, launch a new fund : the Grayscale Smart Contract Platform Ex-Ethereum Fund, or more simply GSCPxE. Behind these somewhat nebulous terms actually hides a basket of gas token of different blockchains competing with Ethereum (ETH).
A deal’s a deal. Meet GSCPxE (Grayscale Smart Contract Platform Ex-Ethereum Fund), our newest investment product. https://t.co/sm7VJzOJcV #GSCPxE $SOL $ADA $DOT $AVAX $ALGO $MATIC $XLM
—Grayscale (@Grayscale) March 22, 2022
So this is news diversified exhibition solution which is offered to investors, by meeting a specific need of the company’s customers. The Ethereum network remains dominant, but its competitors have stood out in recent months by offering alternatives. Grayscale customers therefore now express the need to bet on other smart-contract ecosystemswith the expectation that these would continue to grow.
This is a logic confirmed by Michael Sonnenshein, the CEO of Grayscale, regarding this new hedge fund:
“Smart-contract technology is essential to the growth of the digital economy, but it is still too early to know which network will prevail […]. The beauty of GSCPxE is that investors don’t have to pick a single winner and can instead access ecosystem development […] through a single investment vehicle. »
? To learn more – Find all our crypto presentation sheets
The composition of GSCPxE
The product is designed to replicate the performance of CoinDesk’s SCPXX index. Note that this company, like Grayscale, is an integral part of the Digital Currency Group investment fund. The composition of this index is as follows, at the time of writing this article:
- Cardano (ADA): 24.82%;
- Solana (SOL): 23.41%;
- Avalanche (AVAX): 19.11%;
- Polkadot (DOT): 15.19%;
- Polygon (MATIC): 9.23%;
- Algorand (ALGO): 4.26%;
- Stellar (XLM): 3.98%.
However, this fund is not intended for individuals, it will concern rather the institutional onesin the sense that it will have to be accredited by Grayscale to be able to trade the securities. The base fee is 2.5% annually and the minimum entry fee is $50,000.
This remains exciting news for the crypto ecosystem in general. Like any new fund addition by Grayscale, this tends to suggest a trend from institutional investors, and therefore a potential inflow of capital. From now on, it is a broader diversification that is taking shapethus accompanying this idea of a multi-channel future.
? On the same subject – Grayscale is considering adding several metaverse tokens to its investment products
Source: Grayscale
Newsletter ?
Get a crypto news recap every Sunday ? And that’s it.
About the Author : Vincent Mayor
I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
All articles by Vincent Maire.