Grayscale launches fund based on an index of Ethereum competitors

Grayscale launches GSCPxE, a fund tracking an index of non-Ethereum smart-contract platforms.

The digital-asset management firm Grayscale Investments announced the launch of a fund based on smart-contract platforms, the Grayscale Ex-Ethereum Fund (GSCPxE).

A deal’s a deal. Meet GSCPxE (Grayscale Smart Contract Platform Ex-Ethereum Fund), our newest investment product. https://t.co/sm7VJzOJcV #GSCPxE $SOL $ADA $DOT $AVAX $ALGO $MATIC $XLM

— Grayscale (@Grayscale) March 22, 2022

The product tracks the CoinDesk Smart Contract Platform Select Ex ETH index. As of March 16, the market-cap-weighted portfolio based on the instrument included:

• Cardano (ADA) — 24.63%;
• Solana (SOL) — 24.27%;
• Avalanche (AVAX) — 16.96%;
• Polkadot (DOT) — 16.16%;
• Polygon (MATIC) — 9.65%;
• Algorand (ALGO) — 4.27%;
• Stellar (XLM) — 4.06%.

“The appeal of GSCPxE lies in the fact that investors do not have to pick a single winner; instead they can gain exposure to the ecosystem’s development through a single investment vehicle,” said Grayscale CEO Michael Sonnenschein.

The new Grayscale fund is open for subscription to qualified private and accredited institutional investors.

Jodi Ganzberg, managing director of CoinDesk Indices, emphasised that the index does not include Ethereum.

“Many investors have put money into ETH, given the explosive growth over the past year, so there is now demand for the rest of the smart-contract platform sector,” she added.

As of March 21, assets in the Ethereum-based trust exceeded $9 billion, versus $26.4 billion for the leader — the Bitcoin Trust (GBTC).

Here’s a snapshot of Grayscale investment products as of March 21, 2022.
Visit our product tracker for daily updates: https://t.co/XOE44lKFHm$AAVE $ADA $AMP $BTC $BAT $BCH $COMP $CRV $ETH $ETC $FIL $LINK $LPT $LTC $MANA $MKR $SNX $SOL $SUSHI $UNI $XLM $YFI $ZEC $ZEN pic.twitter.com/Nal3Qg5Mm7

— Grayscale (@Grayscale) March 21, 2022

Earlier, Grayscale called the top priority the transformation of GBTC into an exchange-traded fund.