Grayscale launches fund for ‘ethereum killers’ like cardano and solana » Crypto Insiders

Grayscale Investments, the massive US cryptocurrency asset manager, is launching yet another fund for crypto. This time it is a fund focused on Ethereum (ETH) competitors, i.e. smart contracts platform.

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

The Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE) therefore contains no ether, but does contain cardano (ADA), solana (SOL), polkadot (DOT), avalanche (AVAX), polygon (MATIC), algorand (ALGO) and stellar ( XLM).

Cardano and Solana make up 50% of the fund

Smart contracts are the blockchain technology that emerging markets like decentralized finance (DeFi) and non-fungible tokens (NFT) enable. Ether is not in this fund because it is already in several other Grayscale funds. The company also expects that most investors already have exposure to ether anyway.

Cardano and Solana together make up about 50% of the fund, or 25% each. Avalanche follows with 17% and Polkadot with 16%. Polygon, a layer-2 scaling solution for Ethereum, follows at 9.5%, algorand at 4.2% and stellar at 4%.

Investors don’t have to pick one winner

“Investor demand for diversified exposure has grown in parallel with the ongoing evolution of the crypto ecosystem.

Smart contract technology is critical to the growth of the digital economy, but it’s too early to know which platform will win – from attracting and retaining the most vibrant developer communities to making sure the platform is fast, flexible and scalable. is.

The great thing about GSCPxE is that investors don’t have to pick one winner, and instead can access the development of the smart contract platform ecosystem through a single investment vehicle.”

Said Michael Sonnenshein, CEO of Grayscale. Grayscale’s funds are very popular as it is the only way for many US institutional players to invest in crypto. Such a fund can therefore give a small boost to the underlying crypto.

Grayscale, meanwhile, is trying to turn its well-known bitcoin (BTC) fund, the Grayscale Bitcoin Trust (GBTC) into a exchange traded fund (ETF), or publicly traded fund. However, the US Securities and Exchange Commission (SEC) is not yet cooperating.