Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.
The new fund focused on DeFi tokens will allow the growing pool of investors to trade in decentralized financing.
Grayscale, which is known as the largest crypto-investment manager, has revealed that the company has produced a new fund that focuses on DeFi financing, and is based on the new Coindesk index developed by CoinDesk’s TradeBlock division.
DeFi is one of the fastest-growing components of blockchain technology primarily focused on developing blockchain-inspired trade protocol software to assist in buying and lending cryptocurrencies. Grayscale’s CEO Michael Sonnenshein has commented that the area is worth the investment and surely looks bright to explore and expand operations in.
Grayscale Produces a DeFi Fund Based on New Coindesk Index
The Coindesk DeFi index is produced by TradeBlock and is the first product of its kind that develops an index for potential investors to track and invest in Bitcoin accordingly. Later on, Coindesk announced that they have purchased the TradeBlock for a sum that is yet to be disclosed to the media.
Decentralized finance has been inspired by the principles of blockchain technology that does not require any intermediary or centralized entities to offer financial tools and services.DeFi tokens have become a popular instrument of investment for many people and there has been a sudden increase in platforms striving to host DeFi tokens.
The new Index that is linked with Grayscale intends to assist investors to gauge and track DeFi token prices and invest in them. According to the official press release, the fund is currently available for “eligible individuals and institutional accredited investors.” Furthermore, the press release has also proclaimed that GrayScale is aiming to provide a structural, benchmark way to represent DeFi protocols with their assets being weighed at the market capitalization. The intention behind this fund is to make investments easier via the allocation of money without highlighting the need to buy DeFi tokens directly.
DeFi technology has been gaining steady progress and has acquired an irreplaceable position in the blockchain domain, the average amount of collateral that has been used in the protocols is estimated to have increased 19 fold to a striking $50 billion.
Messari, which is an accurate DeFi tracker tool, has been tracking the market susceptibility of 164 tokens. It has been noticed that the prices of DeFi tokens have registered a jump with an average of 395% this year, marking the digital asset as one of the most profitable components of the blockchain industry. Bitcoin was positioned at an average of 8.3% and ether at number second with a 160% rise in prices.