Altcoins are finding major prominence among crypto funds operating in the market. As per the latest development, the world’s largest digital assets manager Grayscale has added Solana (SOL) and Uniswap (UNI) to its Grayscale Digital Large Cap Fund.
This comes as part of Grayscale’s portfolio rebalancing. Solana (SOL) has emerged as a strong player in the top ten crypto-list with a solid rally over the last three months. On the other hand, decentralized exchanges (DEXs) like Uniswap have been finding strong demand recently with transaction volumes soaring up 500% last week.
The Grayscale Digital Large Cap fund has nearly $500 million worth of assets under management as of date. With the latest rebalancing, Solana and Uniswap will share a space with other giants like Bitcoin, Ethereum, Cardano, Chainlink, Litecoin, and Bitcoin Cash. However, BTC and ETH together dominate more than 90% of the fund holdings. Speaking to Blockworks, Craig Salm, Grayscale’s head of legal, said:
“We will sell the existing fund components in proportion to their weightings and then [put in] Solana and Uniswap. The fund is really a great way for our investors who don’t want to make a targeted bet on bitcoin, Ethereum or another digital asset; they just really want broad market exposure.”
Consolidating With Altcoins
With the emergence of some good altcoin projects like Solana, the altcoin sector is attracting investor funds in big amounts. Apart from just retail interest, even institutions have been pouring major amounts into the altcoin space.
Ethereum alternatives and Layer-1 smart contract platforms like Solana, Avalanche, Polkadot, and others have been in strong demand. As a result, investors have started consolidating their investments with such altcoins and different types of themes.
At the same time, the DeFi theme is also been attractive to investors. The Grayscale Decentralized Finance (DeFi) Fund allows investors to gain exposure to this rapidly emerging DeFi space.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.