It is true, there is no escaping decentralized finance [DeFi]. As DeFi summer 2.0 approaches, more and more firms are gearing up to rake in profits. The latest one to join the bandwagon is none other than Grayscale.
The world’s leading asset manager along with and CoinDesk Indexes has announced the launch of Grayscale Decentralized Finance [DeFi] Fund, an all-new diversified investment product, and the institutional-grade DeFi Index. It was first revealed by Grayscale CEO Michael Sonnenshein while speaking on Squawk Box.
Sonnenshein commented on Grayscale’s focus on creating new avenues for market players to access new, exciting parts of the digital asset ecosystem. The investment manager’s chief also added,
“The emergence of decentralized finance protocols provide clear examples of technologies that can redefine the future of the financial services industry. We’re proud to offer investors exposure to DeFi through Grayscale’s trusted, secure, and industry-leading investment product structures.”
Besides, the official press release revealed that the fund in question is only open for daily subscription to “eligible individual and institutional accredited investors only.”
The company has urged the investors on its platform to maintain caution with regard to investments. The press release stated that Grayscale plans to attempt to have shares of this new product quoted on a secondary market similar to its other offerings and products. However, it went on to maintain that there is no guarantee of the initiative being successful. It also added,
“Although the shares of certain products have been approved for trading on a secondary market, investors in this new product should not assume that the shares will ever obtain such an approval due to a variety of factors, including questions regulators such as the SEC, FINRA or other regulatory bodies may have regarding the product.”
The brand-new DeFi fund
The main objective behind the index is to offer a broad-based, benchmark representation of decentralized protocols. The Index methodology includes liquid DeFi assets on a market cap-weighted basis. The asset manager has realized the need for tools that give calculated exposure to DeFi and the innovations surrounding it. Hence, this is a critical phase for the wider investment community have DeFi summer approaches.
The latest initiative will be Grayscale’s 15th investment vehicle and second diversified investment product. The asset manager currently facilitates a variety of trusts for crytocurrencies such as Bitcoin [BTC], Ethereum [ETH] among others.
It also offers exposure for digital large cap fund. The development comes in the heels after Grayscale’s recent announcement in which it had stated that the DeFi crypto fund became an SEC-reporting company.