As part of its regularly scheduled rebalancing, Grayscale has chosen to sell its Avalanche (AVAX) reserves. The investment giant buys 5 altcoins with this money.
Grayscale sells AVAX: Price has dropped
Avalanche (AVAX) price tumbled nearly 2% on the day after the Grayscale Digital Large Cap Fund sold its holdings. Grayscale announced in an SEC report Friday morning that it was rebalancing its portfolio, saying it “re-adjusted relevant weights by selling Avalanche (AVAX) from the fund’s portfolio, using the cash income to buy existing fund components on a pro-rata basis.”
Noticing the change in a thread on Twitter, the investment giant said it rebalanced its DeFi Fund to add Synthetix (SNX) and Smart Contract Platform Ex-Ethereum Fund to remove Algorand (ALGO).
? Today we announced the latest quarterly update to the component weightings for our multi-asset crypto index funds:
Grayscale Digital Large Cap Fund $GDLC
Grayscale DeFi Fund $DEFG
Grayscale Smart Contract Platform Ex-Ethereum Fund #GSCPXERead on for details:
— Grayscale (@Grayscale) January 6, 2023
Shortly after the announcement, the AVAX price tumbled around 2%. It is currently trading below $12.00, down 15% from a month ago.
Note that AVAX is only a small part of the portfolio of the Grayscale fund, which currently has $163 million in assets under management (AUM). As of September 30, AVAX accounted for less than 1% of fund assets according to its latest quarterly report.
Grayscale will buy these 4 altcoins with cash from AVAX
Currently, the fund includes 65% Bitcoin, 31% Ethereum, 2% Cardano (ADA) and around 1% Polygon (MATIC) and Solana (SOL). According to the report, Grayscale will spend the cash obtained from AVAX for Bitcoin and these 4 altcoins. At the end of the day on January 5, 2023, the Fund Components of the DeFi Fund were a basket of the following cryptos and weights.
- Uniswap (UNI), 65.05%
- Aave (AAVE), 12.39%
- MakerDAO (MKR), 8.15%
- Synthetix (SNX), 6.02%
- Curve DAO Token (CRV), 4.58%
- Compound (COMP), 3.81%
As of January 5, 2023, the Fund Components of the GSCPxE Fund are as follows:
- Cardano (ADA), 28.08%
- Polygon (MATIC), 20.94%
- Polkadot (DOT), 15.98%
- Solana (LEFT), 15.12%
- Avalanche (AVAX), 11.12%
- Cosmos (ATOM), 8.76%
Grayscale strives to acquire Synthetix (SNX)
According to the CoinDesk DeFi Select Index Methodology, Grayscale’s DeFi Fund portfolio is adjusted for this index. For this, it has sold certain quantities of the existing Fund Components by weight, respectively. The platform uses cash proceeds to purchase Synthetix (SNX).
SNX is the cryptocurrency established and transmitted through the activities of the Synthetix network. The platform is a P2P decentralized protocol dedicated to offering trading of synthetic digital assets without requiring any middlemen. The Synthetix network allows consumers to access real world indices, stocks, commodities and currencies. cryptocoin.comWe have included details about the project in this article.
