Zinger Key Points
- The new fund will track some of the largest cryptocurrencies that do not have dedicated funds.
- Cardano, Solana and Avalanche rank among the top 10 largest cryptocurrencies by market capitalization, coming in at seven, nine and 10, respectively.
- Get New Picks of the Market's Top Stocks
The company behind popular Bitcoin BTC/USD and Ethereum ETH/USD trust funds is launching a new investment that will hold seven cryptocurrencies. Here’s a look at the new offering.
What Happened: Grayscale Investments is launching the Grayscale Contract Platform ex-Ethereum Fund. The fund will expand Grayscale’s offerings and focus on non-Ethereum smart contract tokens, according to Decrypt.
The tokens to be included in the fund and their approximate allocations are:
- Cardano ADA/USD: 24%
- Solana SOL/USD: 24%
- Avalanche AVX/USD: 16%
- Polkadot DOT/USD: 16%
- Polygon MATIC/USD: 10%
- Algorand ALGO/USD: 4%
- Stellar XLM/USD: 4%
“Smart contract technology is critical to the growth of the digital economy, but it’s still too early to know which platform will win,” Grayscale CEO Michael Sonnenshein said.
Sonnenshein said the new fund was created to provided diversified exposure to additional cryptocurrencies.
Related Link: SEC Delays Decisiion On Grayscale's Bitcoin Spot ETF, Requests Public Comments About Proposal
Why It’s Important: Grayscale's Grayscale Bitcoin Trust GBTC and Grayscale Ethereum Trust ETHE are two popular options for investors to get exposure to the two largest cryptocurrencies by market capitalization.
The Grayscale Bitcoin Trust has remained popular with many top investors as a way to get exposure to Bitcoin, including Ark Invest and Cathie Wood.
The fund is the third largest holding in the Ark Next Generation Internet ETF ARKW, making up 7.4% of assets.
Grayscale launched a dedicated Solana fund in 2021 and has plans to continue to release additional cryptocurrency funds, including a Bitcoin Spot ETF that has been rejected by the SEC.
The new fund will track some of the largest cryptocurrencies that do not have dedicated funds.
Cardano, Solana and Avalanche rank among the top 10 largest cryptocurrencies by market capitalization, coming in at seven, nine and 10, respectively.
Polkadot (11th), Polygon (16th), Algorand (29th) and Stellar (31st) all rank in the top 40 cryptocurrencies by market cap.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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