Grayscale Expands Smart Contract Fund to Include Seven Cryptocurrencies
Grayscale Investments has expanded its Smart Contract Fund to include several cryptocurrencies: Ethereum, Solana, Cardano, Avalanche, Sui, Near, and Polkadot. This fund is available only to accredited investors.
Grayscale Smart Contract Fund Overview
- The fund is market-weighted and rebalances quarterly.
- A 30% cap on each rebalance prevents any single token from dominating the fund.
- Current cryptocurrency weightings are SOL at 31.3%, ETH at 31.22%, ADA at 18.23%, AVAX at 7.26%, SUI at 6.5%, NEAR at 2.95%, and DOT at 2.54%.
- The Net Asset Value (NAV) per share is $10.44, with a daily increase of 0.19%.
- Total assets under management (AUM) are approximately $3.23 million, with 309,400 outstanding shares.
Competition Between SOL and ETH
Solana has recently surpassed Ethereum in decentralized exchange (DEX) volume due to its lower fees and faster transactions, attracting traders who prefer efficiency over cost. This competition highlights Solana's appeal for trading memecoins compared to Ethereum's higher transaction costs.
Grayscale's ETF Initiatives
- Grayscale has filed for a Polkadot ETF, joining other asset managers in seeking SEC approval for new crypto Exchange-Traded Products (ETPs).
- Similar applications have been submitted by firms like 21Shares.
- Grayscale is also exploring ETFs tied to other cryptocurrencies including XRP, SOL, DOGE, and LTC.