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- Grayscale Investments is cutting some funds from Bitcoin and Litecoin products and directing them to Solana and Uniswap.
- The company seeks to leverage on increased investor interest in Solana and is also preparing for SEC-approved crypto ETFs.
Grayscale Investments is re-organizing its digital assets investments funds and re-directing some funds to Solana (SOL) and Uniswap (UNI). This is per a recent announcement on its “quarterly rebalancing of funds” for its Digital Large Cap Fund and its DeFi Fund.
Specifically, the New York-based crypto asset manager will reduce portfolio funds for Litecoin (LTC) and Bitcoin (BTC). The resultant capital will be subsequently invested in Solana and Uniswap in large proportions.
Notably, this is the first time Grayscale, the world’s largest crypto asset manager (over $46.8B assets under management (AUM)), is offering products related to Solana. The network touts itself as the world’s fastest blockchain, while Uniswap is Ethereum’s largest decentralized exchange (DEX).
SOL and UNI now take up 3.24 percent and 1.06 percent of the funds, respectively. This makes them the fourth and fifth-largest components of Grayscale’s funds, respectively. Leading digital assets are Bitcoin (62.19 percent) and Ethereum (26.08 percent). The company Grayscale Bitcoin Trust (GBTC) has even attracted renowned serial investors such as multinational investment bank Morgan Stanley. Cardano (ADA), which the firm invested in July, now accounts for 5.11 percent of the company’s digital fund portfolio.
Grayscale Invests in Solana and Uniswap
According to Craig Salm, Grayscale’s head of legal:
The fund is a great way for our investors who don’t want to make a targeted bet on bitcoin, Ethereum, or another digital asset; they just really want broad market exposure.
The new offerings may also be attributed to institutional investors’ increased favor of Solana investment products. Solana led the altcoin space with $59M in monthly institutional capital inflows in September, CoinShares reports. The figures dwarfed Ethereum’s $35.10 million despite Solana’s 14-hour network outage last month.
At writing time, SOL was trading at $167.05, and UNI at $25.26, according to our data. SOL is now 23 percent up week-over-week, while UNI is 5.7 percent up in the same period. Additionally, SOL is the sixth-largest crypto by a $49.7B market cap, while UNI is ranked 13th with a $13B market cap.
Future plans
Grayscale has been making investor talk following rumors of a Bitcoin Exchange Traded Fund (ETF) release. The firm is confident in the eventual legalization of the security’s product, referring to its release as “when” rather than “if.”
In preparation for crypto ETFs, Grayscale has ramped up operations to ensure full compliance with the US regulator. Already, the firm has hired David LaValle, CEO of Alerian, to be its global head of ETFs. The firm is looking to convert its $27.8B GBTC to an ETF. LaValle will also enable Grayscale to launch funds that invest in the stocks of public crypto companies, like Coinbase.
So far, US ETF applications have been unsuccessful but experts say one could come “soon.”
