Grayscale Investments, the world’s largest digital asset management company, has announced its latest adventure into the crypto space. According to the firm, it would now be launching a new diversified investment product in the burgeoning decentralized finance sector.
The new fund, known as Grayscale Decentralized Finance (DeFi) Fund, would allow investors to be able to gain a level of exposure into selected leading Defi protocols “through a market-capitalization weighted portfolio designed to track the CoinDesk DeFi Index.”
Per the announcement, the CoinDesk DeFi Index would seek to “provide a broad-based, benchmark representation of DeFi protocols.”
Defi protocols in recent times have enjoyed enormous amounts of patronage. The space, per a recent report from us, saw “transaction volume on decentralized exchanges jump from $221 billion to $404 billion between April and June.” Not only that, the ecosystem built on the network of the second-largest crypto asset by market cap, Ethereum, has also seen over 3 million unique addresses interact with the sector.
Michael Sonnenshein, the CEO of Grayscale, labeled the emergence of Defi as “clear examples of technologies that can redefine the future of the financial services industry.” He added that his investment firm would “focus on creating opportunities for investors to access new, exciting parts of the digital asset ecosystem.”
It should be noted that Grayscale’s Bitcoin trust is the largest in the world. Though it is currently trading at a negative premium, the investment firm has partnered with BNY Mellon in its attempt to transform the funds into an exchange traded fund.