Grayscale Investments, a digital currency investing and crypto asset management, has recently established a new fund that provides investors with exposure to various smart contract networks other than Ethereum ($ETH). Cardano ($ADA) and Solana ($SOL) are the fund’s prime holdings.
According to published data, the Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE) holds tokens of other smart contract networks, including the above-mentioned and Algorand ($ALGO), Avalanche ($AVAX), Polkadot ($DOT), Polygon ($POLY), and Stellar ($XLM).
Notably, ADA is the fund’s top holding, of which it accounts for 24.63%, followed by Solana, which makes up 24.27%. Avalanche ranks third with 16.96%t, and Polkadot is with 16.16%.
#GSCPxE’s holdings as of inception on 3/16. Source: Grayscale/Twitter
The allocation is significant when the Cardano network’s transaction volume and total value locked (TVL) on its decentralised finance (Defi) protocol have been increasing. Cardano just overtook Kusama in terms of total value locked.
Previously, Charles Hoskinson, co-founder and CEO of the company IO Global, says that “we ain’t seen nothing yet” in terms of TVL on Cardano. It is due to the fact that many projects are expecting the Vasil hard fork combinator (HFC) event to occur in June.
Grayscale CEO Michael Sonneshein states that the GSCPxE fund allows investors to bet on a range of developing platforms rather than on the already major venue for Defi and decentralised apps.
The weighting of the fund’s holdings is determined by market capitalization. Grayscale rebalanced its Digital Large Cap Fund (GDLC) last year to include a new ADA component, helping investors exposed to the cryptocurrency after its over 1,000% growth in a single year.