Grayscale, one of the largest investment managers in the crypto industry that manages billions of dollars of crypto, today announced the launch of a new DeFi fund that would be tied to the Coindesk DeFi Index that is produced by its TradeBlock division.
The company believes that this fund would help users to get introduced to a new fast-growing ecosystem and would be able to invest in it without the need to buy and hold specific tokens. Also, with a large number of tokens available in the DeFi space and each vying for attention from the investors, users may be confused on which ones to invest in and so in such a situation, it would be best to leave it to experience funds managers within Grayscale who would be allocating the funds based on the Index.
The Index currently has tokens like Uniswap, Aave, Compound, Curve, and others based on their market capitalization and so the fund would also be investing in such a market capitalization weighted portfolio. The capitalization can get changed over a period of time and new tokens may also be introduced into the Index depending on the performance of the tokens and the projects behind them but the fund would be able to adapt to all these changes over the next few years.
The Grayscale company has a bitcoin fund which has over $25 billion under management. Likewise, it has funds for many other cryptos like ethereum, bitcoin cash, and others but this is the first time that it is introducing a fund focussed on DeFi space which has been making rapid growth over the last couple of years. This may help to boost this space further in the coming years though for now, the crypto prices seem to be in a bearish market.
The fact that such an announcement has come in during bearish times for the crypto ecosystem could help to provide a fillip for the industry though it will be a few months before the fund gets the investments and begins to invest into space. The traders and investors would hope that the prices would be in a much better shape by the time that the investments begin but this is indeed a shot in the arm for the DeFi space which is likely to inspire more developers to build innovative and exciting products in the future with the backing of funds.