Grayscale Rebalances DeFi Fund by Relinquishing BNT and UMA Coins, Purchases Flexa’s AMP

| Updated
by Steve Muchoki · 2 min read
Grayscale Rebalances DeFi Fund by Relinquishing BNT and UMA Coins, Purchases Flexa’s AMP
Photo: Shutterstock

Founded back in 2013, Grayscale has seen its assets under management rise to approximately $43.6 billion as of December 31, 2021.

Grayscale Investments, the world’s leading digital currency asset manager, has published the quarterly rebalancing of funds. Among them is the Grayscale Decentralized Finance (DeFi) Fund that holds digital assets that make up the CoinDesk DeFi Index. According to the firm, Bancor (BNT) and Universal Market Access (UMA) have been removed from the DeFi fund.

As a result of which the proceeds will be used to purchase Amp (AMP) tokens.

“In accordance with the CoinDesk DeFi Index methodology, Grayscale has adjusted the DeFi Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings,” the company noted in a press release.

Following the announcement, the AMP token was up approximately 2.1% at the time of reporting and trading around $0.04994240 according to CoinGecko. Notably, AMP is the native digital asset of the Flexa network, which enables crypto-collateralized payments at physical and online stores.

The asset manager is in support of Flexa’s mission to accelerate the development of blockchain technology in the P2P money system. Consequently, as blockchain technology grows through the money system, the company gets to return profits to its investors.

The Grayscale DeFi fund now consists of Uniswap that accounts for 42.33%, Aave (AAVE), 13.06%, Curve (CRV), 10.63%, MakerDAO (MKR), 8.99%, Amp (AMP), 7.39%, Yearn Finance (YFI), 6.34%, Compound (COMP), 5.02%, Synthetix (SNX), 3.15%, and SushiSwap (SUSHI), 3.09%.

The firm, however, did not alter the Grayscale Digital Large Cap Fund. Whereby the components of the Digital Large Cap Fund include Bitcoin (BTC), 60.50%, Ethereum (ETH), 30.13%, Solana (SOL), 3.56%, Cardano (ADA), 3.05%, Uniswap (UNI), 0.77%, Chainlink (LINK), 0.71%, Litecoin (LTC), 0.69%, and Bitcoin Cash (BCH), 0.59%.

Grayscale Scrutinizes the DeFi and Altcoin Industry

Founded back in 2013, Grayscale has seen its assets under management rise to approximately $43.6 billion as of December 31, 2021. However, it is prudent to note that both the DeFi Fund and the Digital Large Cap does not generate any income according to the company. Instead, they both regularly distribute Fund Components to pay for ongoing expenses.

The DeFi ecosystem has experienced astronomical growth over the past two years. Moreover, it was directly attributed to the bull market that began in 2020. According to market analytics provided by DeFi Pulse, the total value locked stands at approximately $102.21 billion. Whereby the figure is retesting last year’s all-time high of around $110 billion.

Institutional investors largely dominated cash inflows in the DeFi ecosystem last year, a phenomenon that was attributed to growing regulations in the industry.

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