New York, October 01, 2021 (GLOBE NEWSWIRE) – Grayscale investmentsÂ®, the world’s largest digital currency asset manager and manager of both the GrayscaleÂ® Digital Large Cap Fund (OTCQX: GDLC) (the Digital Large Cap Fund) and the GrayscaleÂ® DeFi Fund (the DeFi Fund), has today announced the update of the fund component weights for each product as part of their respective quarterly reviews.
In accordance with the construction criteria of the Digital Large Cap Fund, Grayscale adjusted the portfolio of the Digital Large Cap Fund by selling certain amounts of the existing Fund Components in proportion to their respective weights and using the cash proceeds to purchase Solana (SOL) and Uniswap (UNITED ). This announcement follows July 2021 new that Grayscale has adjusted the Digital Large Cap Fund portfolio and purchased Cardano (ADA), and this is the first time that Solana (SOL) will be included in a Grayscale investment vehicle.
SOL is the native token of the Solana network, a smart contract platform first designed by Anatoly Yakovenko in a 2017 white paper. Like the Ethereum network, the Solana network is one of many projects to expand the use of the blockchain beyond a simple peer-to-peer money system. The Solana protocol introduced the Proof-of-History (PoH) consensus mechanism as an alternative to pure Proof-of-Stake (PoS) and Proof-of-Work (PoW) blockchains like Ethereum. PoH is intended to provide transaction processing speed and capacity advantage over traditional PoW and PoS networks, which rely on sequential block production and can cause delays caused by validator confirmations.
UNI is the native token of the Uniswap Network, a decentralized exchange originally designed in 2016 by Vitalek Buterin, the creator of Ethereum, and later developed in 2018 by Hayden Adams and Uniswap Labs. Uniswap enables digital asset trading without a central order book by aggregating digital asset trading pairs using smart contracts. On Uniswap, users trade digital assets with each other by paying transaction fees to independent market makers called liquidity providers. UNI holders have the opportunity to propose and vote on improvement proposals to adjust the functionality of the Uniswap network.
At day-end on October 1, 2021, the fund components of the Digital Large Cap Fund were a basket of the following assets and weights.
- Bitcoin (BTC), 62.19%
- Ethereum (ETH), 26.08%
- Cardano (ADA), 5.11%
- Solana (SOL), 3.24%
- Uniswap (UNI), 1.06%
- Chain link (LINK), 0.82%
- Litecoin (LTC), 0.77%
- Bitcoin Cash (BCH), 0.73%
No new tokens have been added or removed from the DeFi Fund. At the end of the day on October 1, 2021, the fund components of the DeFi Fund were a basket of the following assets and weights.
- Uniswap (UNI), 45.20%
- Aave (AAVE), 14.11%
- MakerDAO (MKR), 7.84%
- SushiSwap (SUSHI), 7.18%
- Compound (COMP), 6.73%
- Synthetix (SNX), 6.29%
- Yearn Finance (YFI), 3.92%
- Curve (CRV), 3.53%
- Bancor Network Token (BNT), 3.04%
- UMA Protocol (UMA), 2.16%
Neither the Grayscale Digital Large Cap Fund nor the Grayscale DeFi Fund generate income, and both regularly distribute fund components to pay for running expenses. Therefore, the amount of Fund Components represented by the shares of each Fund gradually decreases over time.
For more information, please visit grayscale.com.
This press release is not an offer to sell or the solicitation of an offer to buy securities in any jurisdiction where such an offer or solicitation would be illegal, nor will there be any sale of securities. in a jurisdiction in which such offering, solicitation or sale would be illegal prior to registration or qualification under the securities laws of that jurisdiction.
About grayscaleÂ® Large Cap Digital Fund
Grayscale Digital Large Cap Fund allows investors to gain exposure to a market capitalization weighted portfolio of large cap digital currencies through a single investment vehicle without having to directly buy, store and hold digital currencies. Using a rules-based portfolio construction methodology derived from the CoinDesk Large Cap Index, the Digital Large Cap Fund targets coverage of the top 70% of the digital currency market and is reassessed quarterly; however, the weightings of each Component of the Fund change daily and are published around 4:00 p.m. New York time. * Additional information on the methodology of the Index is available at: https://tradeblock.com/markets/dlcx.
The investment objective of the Digital Large Cap Fund is that its Shares reflect the value of the Fund Components held by the Digital Large Cap Fund, less its expenses and other liabilities. To date, the Digital Large Cap Fund has not achieved its investment objective and the Shares listed on OTCQX have not reflected the value of the Fund Components held by the Digital Large Cap Fund, less expenses and other liabilities. of the Digital Large Cap Fund, but instead traded both with premiums and discounts at this value, with variations that were sometimes substantial.
The Digital Large Cap Fund is an investment vehicle with shares titled in the name of the investor, providing a structure familiar to financial and tax advisers and easy transferability to beneficiaries under inheritance laws. In addition, Shares may be held in certain IRA, Roth IRA, and other brokerage and investor accounts.
About grayscaleÂ® DeFi Fund
Grayscale Decentralized Finance (DeFi) Fund owns digital assets that make up the CoinDesk DeFi Index. These digital assets are drawn from the universe of investable digital assets native to decentralized finance or DeFi. The index methodology includes liquid DeFi assets on a market capitalization weighted basis and is reassessed quarterly; however, the weightings of each Component of the Fund change daily and are published around 4:00 p.m. New York time. * Additional information on the methodology of the Index is available at https://tradeblock.com/markets/dfx/.
Grayscale intends to attempt to have the shares of this new product listed on a secondary market. However, there is no guarantee that this will be successful. Although the shares of some products have been approved to be traded on a secondary market, investors in this new product should not assume that the shares will ever obtain such approval due to various factors, including questions asked by agencies. regulators such as the SEC, FINRA or other regulatory bodies may have regarding the product. Accordingly, the shareholders of this product must be prepared to bear the risk of investing in equities indefinitely.
* The compositions of the Digital Large Cap Fund and DeFi Fund are assessed on a quarterly basis to remove existing fund components or to include new fund components in their portfolios, in accordance with construction criteria established by Grayscale or the provider of the fund. ‘index, as the case may be.
About Grayscale InvestmentsÂ®
Founded in 2013, Grayscale Investments is the world’s largest digital currency asset manager, with more than $ 41.5 billion in assets under management as of October 1, 2021. Through its family of investment products, Grayscale provides access and exposure to the digital currency asset class in the form of security without the challenges of directly buying, storing and custody of digital currencies. With a proven track record and unparalleled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. Grayscale products are distributed by Genesis Global Trading, Inc. (FINRA / SIPC Member, MSRB Registered). For more information, please visit grayscale.com and follow @Shades of grey.
Jennifer Rosenthal [email protected]