Grayscale Investments, the world’s largest crypto asset manager, has revamped the composition of its key funds following a second-quarter review. This shakeup includes the removal of Polygon (MATIC) from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).
Quarterly Rebalancing Reflects Market Shifts
Grayscale periodically rebalances its investment vehicles, including the Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund (DEFG), and GSCPxE Fund. These adjustments aim to reflect current market conditions, relevant indexes, and overall investment objectives.
GDLC Prioritizes Bitcoin and Ethereum
The Grayscale Digital Large Cap Fund continues to prioritize established players, with Bitcoin (BTC) holding the top spot at 70.46%. Ethereum (ETH) follows closely at 23.51%, while Solana (SOL), XRP (XRP), and Avalanche (AVAX) take up smaller portions. Notably, Cardano (ADA) was removed from GDLC in April.
DEFG Maintains DeFi Focus
The Grayscale DeFi Fund retains its focus on Decentralized Finance (DeFi) with Uniswap (UNI) taking the lead at 53.75%. MakerDAO (MKR), Lido (LDO), Aave (AAVE), and Synthetix (SNX) round out the remaining allocations.
GSCPxE Fund Drops MATIC, Focuses on Solana
The most significant change comes with the GSCPxE Fund. Polygon (MATIC) has been removed entirely, with its allocation redistributed among other holdings. The fund now prioritizes Solana (SOL) at 65.80%, followed by Cardano (ADA) at 14.67%, Avalanche (AVAX) at 10.70%, and Polkadot (DOT) at 8.83%.
Also Read: Polygon (MATIC) Shocks Market: Upward Climb to $1 Resistance (But Can It Hold On?)
MATIC Faces Challenges After SEC Scrutiny
Polygon (MATIC) has faced a rough patch recently. The U.S. Securities and Exchange Commission (SEC) listing MATIC as a potential security and the broader crypto market downturn contributed to a 34% price drop in a month. Despite a recent 7% rebound, MATIC’s future remains uncertain, with its ranking slipping to 21st in the market.
Is This the End for MATIC?
While Polygon’s removal from the GSCPxE Fund raises concerns, it’s not necessarily a death knell for the project. The broader market sentiment and regulatory uncertainties likely played a role in Grayscale’s decision. Polygon remains a popular blockchain network, but its long-term success hinges on overcoming these challenges.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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