Grayscale Investments Launches Smart Contract Platform Fund

UTC by Sanaa Sharma · 3 min read
Grayscale Investments Launches Smart Contract Platform Fund
Photo: Shutterstock

Grayscale CEO stated that the crypto market will expand as more investors continue looking for innovative areas to invest in.

Grayscale Investments, a cryptocurrency asset management company, has recently launched its new Grayscale Smart Contract Platform Ex-Ethereum Fund (“GSCPxE” or the “Fund”). This novel fund is all set to offer a direction to 7 smart-contract cryptocurrencies, not including Ether (ETH).

The fund aims to support and offer an operational experience to several cryptocurrencies that run popular smart contracts, except Ethereum. Grayscale has been regularly involved in investments in smart contracts, with this announcement being the company’s eighteenth investment product and 3rd diversified fund offering.

The composition of the fund is as follows 24.6% ADA, 24.27% SOL, 16.96% AVAX, 16.16% DOT, 9.65% MATIC, 4.27% ALGO, and 4.06% XLM. While the composition was specifically based on their crypto token’s performance during that time, BNB and LUNA seem to be absent from this data set.

Smart Contracts are essentially programs that operate on the blockchain and can process involuntarily once some specific conditions are put in place. The use of smart contracts can construct decentralized financial (DeFi) applications, describe the possession of virtual assets like Non-Fungible Tokens (NFTs), transfer money under regulations, and consequently, even make alternative digital tokens.

On the other hand, Smart Contract Platforms are blockchains wherein the users build open-source, self-executing programs to run through more innovative, convenient transactions. On the contrary, there are some disadvantages of smart contracts too. They are more sensitive to getting exposed to hacks and exploits since they presume an extended space on the blockchain.

Chief Executive Officer of Grayscale Michael Sonnenshein expressed his thoughts about the fund while stating that the crypto market will expand as more investors continue looking for innovative areas to invest in. According to him, smart contract technology is crucial to the expansion of the digital economic framework. While it is ambitious to say which platform is the best as of now, Sonnenshein asserts that the fund allows investors to avail the development of the smart contract platform environment via a singular investment vehicle, rather than having to select one platform that aces the others.

Canadian businessman and entrepreneur, Kevin O’Leary, who is also famously called ‘Mr. Wonderful’, has highlighted the significance of expansion and diversification in crypto. At present, O’Leary has invested twenty percent of his wealth in thirty-two diverse places in the market. However, it is also true that cryptocurrencies have been, for the largest time, been strictly linked to one another in terms of prices. This has led to a reduced advantage even with the diversification of investments.

Some of the other products offered by Grayscale include the Bitcoin Trust, which is essentially the largest Bitcoin trust fund across the globe. Grayscale’s plea to modify this fund to a United States-based spot ETF has not yet been supported by the SEC.

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