Grayscale Investments is diversifying its service portfolio by launching a smart contract fund that includes seven major altcoins such as Cardano, Solana, Polygon, Avalanche, Polkadot, Algorand, and Stellar.
Grayscale Investments Explores The Smart Contract Domain
Cryptocurrency asset manager Grayscale is expanding its services and is now launching a smart contract fund called GSCPxE that focuses on seven major altcoins.
As per the official press release, the GSCPxE fund is described as an offering that “provides investors with exposure to a selection of industry-leading Smart Contract Platforms through a market-capitalization-weighted portfolio designed to track the CoinDesk Smart Contract Platform Select Ex ETH Index.”
Smart contacts are generally defined as programs that run on blockchains and help execute actions automatically when certain predetermined conditions are met. Smart contracts are exceptionally useful in the cryptocurrency domain and help developers/users create skillful Defi apps. Moreover, these smart contracts also help in “representing the ownership of digital property like NFTs, move funds by conditional instructions, and even create other digital assets.”
As per the press release, the GSCPxE fund allocated nearly 24% to Cardano and Solana. Avalanche and Polkadot are allotted 16% while Polygon and Algorand have received 9% share each. Stellar is accounting for 4% of the total fund.
Speaking about the launch of its smart contact fund Grayscale’s CEO Michael Sonneshein commented:
“Investor demand for diversified exposure has grown in parallel to the ongoing evolution of the crypto ecosystem…Smart contract technology is critical to the growth of the digital economy, but it’s still too early to know which platform will win – from attracting and retaining the most vibrant developer communities to ensuring the platform is high-speed, flexible, and scalable. The beauty of GSCPxE is that investors do not have to choose one winner, and instead can access the development of the smart contract platform ecosystem through a singular investment vehicle.”
Apart from GrayScale’s smart contract venture, the investments firm had previously explored many critical avenues including launching offer trusts focusing on investing in Bitcoin, Ethereum, Litecoin, Zcash, and Decentraland.