Digital asset management firm Grayscale has announced the launch of a new fund focused on smart contract ecosystems (excluding Ethereum). The Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE) provides investors exposure to leading and dominant ecosystems within this space.
👉 Discover how Grayscale's new fund can diversify your crypto portfolio
Why Settle for One When You Can Have Them All?
Grayscale CEO Michael Sonnenshein explained that most investors already engaged with DeFi have primarily interacted with Ethereum. As the crypto ecosystem expands, investor interest in alternative smart contract platforms has grown significantly.
With new startups emerging daily, identifying which projects will maintain relevance becomes challenging. The GSCPxE fund eliminates the risk of choosing "a single winner" by providing exposure to "multiple smart contract platform ecosystems through a single investment vehicle."
Fund Assets and Weightings
Grayscale noted that the displayed assets and allocations are not final and may be rebalanced. As of publication, the fund's composition includes:
- Solana (SOL): 23.3%
- Cardano (ADA): 25.35%
- Avalanche (AVAX): 18.43%
- Polkadot (DOT): 15.43%
- Polygon (MATIC): 9.14%
- Stellar (XLM) & Algorand (ALGO): ~4% each
Source: Grayscale Investment Materials
The fund tracks a market-cap-weighted portfolio using a CoinDesk-provided index (both entities operate under Digital Currency Group). This marks Grayscale's 18th investment product and third diversified fund offering.
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Grayscale's Confidence in Smart Contract Blockchains
Grayscale's strategic positioning suggests strong conviction in smart contract technology's role in crypto's future, without betting on specific platforms.
"Smart contract technology is critical to the digital economy’s growth, but it’s too early to declare winners. The GSCPxE allows investors to participate without picking individual champions," stated Sonnenshein.
SEC Approval Uncertainties
A significant challenge for Grayscale remains the uncertain approval of its Bitcoin Spot ETF application by the SEC. The firm continues advocating for investor support, leveraging its operational experience with the Bitcoin Trust (GBTC).
FAQ Section
Q1: What cryptocurrencies does the GSCPxE fund include?
A: The fund currently covers Solana, Cardano, Avalanche, Polkadot, Polygon, Stellar, and Algorand, with weightings subject to quarterly rebalancing.
Q2: How can investors access this fund?
A: Presently available via private placement to accredited investors, with plans for secondary market listing following regulatory approvals.
Q3: What’s the annual management fee?
A: The fund carries a 2.5% annual fee, consistent with Grayscale’s other investment products.
Q4: Why is Ethereum excluded from this fund?
A: Grayscale offers separate Ethereum-focused products; this fund specifically targets alternative smart contract platforms.
Q5: When will retail investors be able to invest?
A: Public trading depends on SEC approvals for conversion into an exchange-traded product, with no confirmed timeline.
Q6: How does this compare to Grayscale’s DeFi Fund?
A: The DeFi Fund invests in tokens of decentralized protocols, while GSCPxE focuses on base-layer smart contract platforms.