Grayscale reshuffles its DeFi index fund, adds Flexa's AMP

Crypto asset management firm Grayscale announced Tuesday a shake-up in the constituents of its DeFi fund as part of its quarterly rebalancing.

The firm, which is owned by crypto deca-unicorn DCG, said that it would remove Bancor and UMA from the index fund and add AMP. Bancor – the token tied to the decentralized exchange — and UMA — a token tied to a protocol for synthetic assets – together accounted for 2% and 2.9% of the index at the time of its launch, respectively. Grayscale launched the fund in July 2021 to provide institutional investors exposure to the fast-growing corner of the crypto market without having to custody tokens themselves.

The fund is underpinned by an index administered by CoinDesk Indices. 

As for the new addition, AMP is a token that is used within the Flexa Network as a form of collateral. 

AMP will make up 7.39% of the fund. Other assets in the fund include Uniswap and Aave, which make up 42.33% and 13.06%, respectively. 

Grayscale, which is best known for its GBTC product, has its sights set on launching a wide range of new financial products tied to the crypto market in 2022. The firm has said that it intends to upgrade its GBTC product into a proper exchange-traded fund. The firm also submitted an application with financial regulators to launch an ETF that would track the shares of companies operating in the digital asset space. 

This post has been updated for clarity. 

About Author

Frank Chaparro covers the intersection of financial markets and cryptocurrency as Editor-at-Large. Since joining the publication in 2018 as its first reporter, he has played a key role in building The Block into a leader in financial journalism and research. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected]