Grayscale Adjusts Portfolio Allocations, Drops MATIC, in Quarterly Rebalance

Asset manager Grayscale has executed a rebalancing of three of its crypto funds, leading to the removal of Polygon’s MATIC and the addition of Avalanche (AVAX) and XRP, as announced on January 5.

This quarterly review affects Grayscale’s Digital Large Cap Fund (GDLC), DeFi Fund, and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).

Bitcoin (BTC) Tops Revised Digital Large-Cap Fund

The revised composition of the Digital Large Cap Fund now includes Bitcoin (BTC) at 69.15%, Ethereum (ETH) at 21.90%, Solana (SOL) at 3.65%, XRP at 2.54%, Cardano (ADA) at 1.62%, and AVAX at 1.14%.

The removal of MATIC from GDLC as a result of the rebalancing move by Grayscale is a standard procedure to evaluate and enhance fund performance in light of risk evaluations, market circumstances, and investment goals.

Curve DAO (CRV) token Dropped from DeFi Fund

In the DeFi Fund, the Curve DAO (CRV) token has been removed, and the new basket comprises Uniswap (UNI) at 41.11%, Lido DAO (LDO) at 23.90%, MakerDAO (MKR) at 13.39%, Aave (AAVE) at 12.63%, and Synthetix (SNX) at 8.97%.

This move differs from that made in July 2023 when no token was removed from the Grayscale DeFi fund.

Although MATIC has been dropped from one of the portfolios, it is still included in the GSCPxE Fund, where no tokens have been added or removed. The fund’s updated composition consists of SOL at 44.54%, ADA at 19.77%, AVAX at 13.89%, Polkadot (DOT) at 9.75%, MATIC at 8.25%, and Cosmos (ATOM) at 3.80%.

Optimization for Performance 

These adjustments are part of Grayscale’s routine process of reviewing and optimizing fund performance based on market conditions, risk assessments, and investment objectives. The company employs the CoinDesk DeFi Select Index methodology to determine fund benchmarks.

Grayscale, known for its crypto fund offerings, is currently awaiting regulatory approval for a spot Bitcoin exchange-traded fund (ETF) in the United States. The decision by the Securities and Exchange Commission (SEC) is expected anytime from January 10.