TL;DR
- Grayscale has rebalanced several of its investment funds, adding tokens like Livepeer, Curve, and Cardano to diversify portfolios for 2025.
- The focus on decentralized AI technologies and the DeFi sector reflects market trends and adapts to new opportunities.
- The updates are part of the company’s quarterly review process, adjusting its assets based on performance and market conditions.
Grayscale Investments, one of the most influential crypto asset managers, has made significant adjustments to its investment funds in preparation for the upcoming year. These changes affect four of its main funds: the Grayscale Decentralized AI Fund, Decentralized Finance Fund, Digital Large Cap Fund (GDLC Fund), and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund). These modifications are based on the portfolio review conducted by the firm during Q4 2024.
In its AI Fund, Grayscale made selective asset sales and added new tokens such as Livepeer (LPT), a project focused on decentralizing video streaming, along with NEAR Protocol, Render, Bittensor, Filecoin, and The Graph. These adjustments aim to diversify the fund’s exposure to decentralized AI technologies, a rapidly emerging area in the crypto space.
Diversification of Funds and New Investment Opportunities
For the DeFi Fund, Grayscale replaced Synthetix with Curve Finance, one of the largest and most innovative decentralized exchange protocols. As a result, the fund now includes key assets like Uniswap, Aave, Lido, MakerDAO, and Curve. Uniswap remains the fund’s largest holding, representing 47.88%, while Curve makes up 6.71%.
The GDLC Fund also saw a major shift, with Cardano replacing Avalanche. The fund now includes Bitcoin, Ethereum, Solana, XRP, and Cardano, with Bitcoin dominating the portfolio at 73.52%, while Cardano represents just 1.44%.
Meanwhile, the GSCPxE Fund was rebalanced as well, adding SUI and adjusting its holdings with Solana, Cardano, Avalanche, Sui, NEAR Protocol, and Polkadot, aligning the portfolio with the fund’s strategy to capitalize on emerging opportunities in the crypto space and meet investor demands for high-potential assets.
Grayscale emphasized that these funds do not generate direct income but instead distribute assets regularly to cover operating expenses, meaning the total holdings of each fund decrease over time. The rebalancing process occurs quarterly, based on market evaluations and asset performance.
In October 2024, Grayscale also announced it was considering 35 altcoins for potential inclusion in its products, highlighting its ongoing focus on identifying promising cryptocurrencies. With these updates, the company reaffirms its leadership in the crypto investment world, quickly adapting to emerging trends and opportunities in the market.
