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Grayscale Introducing a DeFi Fund and Index for Institutional Investors

Grayscale Investments

July 20, 2021

Reading Time: 2 minutes

Grayscale Investments, the world’s biggest digital asset management, is introducing a Fund and index, according to CEO Michael Sonnenshein.

Sonneshein stated in an interview with CNBC Squawk Box that the company had received interest from a wide range of current and potential investors in DeFi assets. As a consequence, the company has created both an institutional-grade index and a fund.

Benefits of the fund

According to him, the fund would allow investors to invest in DeFi protocols via a single investment instrument. It will provide them with a wide range of DeFi assets, such as uniswap (UNI) and aave (AAVE).

Grayscale is a major fund manager that enables institutional investors to invest in Bitcoin, Ethereum, Cardano, and other high-cap cryptocurrency and non-crypto assets. They are now planning to invest in DeFi-based assets.

Grayscale’s investment

This launch will be Grayscale’s 15th investment entity, according to Sonneshein. The company presently has several trusts for bitcoin, ether, and other cryptocurrencies and a digital big-cap fund that invests in a number of popular cryptocurrencies. Following its bitcoin and ether trusts, the business revealed that this crypto fund has become an SEC-reporting corporation.

When regulatory permissions for that kind of product are available, Sonneshein says they are 100% dedicated to turning their flagship product GBTC into an ETF. He explained that the SEC is looking for a few distinct phases of maturity in the underlying market, which he believes are the ultimate steps that regulators need to authorize such a product and provide investors with the safeguards they want.

Turning bitcoin trust (GBTC) into a bitcoin ETF

Grayscale is also attempting to convert its primary bitcoin trust (GBTC) into a bitcoin ETF, presumably to address the trust’s ongoing negative premium. It is now collaborating with BNY Mellon to accomplish this goal. On the program, Sonneshein said that approving a bitcoin ETF is “really a question of when, not if,” in his opinion.


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