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Grayscale Adds Flexa’s AMP to DeFi Fund, Removes BNT, UMA in Quarterly Rebalancing

The world’s largest digital asset manager announced the updated weightings on Monday, following reconstitution of the CoinDesk DeFi Index (DFX).

Updated May 11, 2023, 4:06 p.m. Published Jan 4, 2022, 4:14 a.m.

Grayscale Investments, which runs the Grayscale DeFi Fund and Grayscale Digital Large Cap Fund, announced in a release on Monday updated fund component weightings for each product in connection with the funds’ quarterly reviews.

Rebalancing of the Grayscale DeFi Fund followed quarterly reconstitution of the CoinDesk DeFi Index (DFX), which the fund tracks.

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New York-based Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.
CoinDesk Indices launched the CoinDesk DeFi Index (DFX) in July. At the same time, Grayscale announced the Grayscale DeFi Fund. The DFX output is available live on tradeblock.com, the website of CoinDesk Indices’ wholly owned index calculation agent.
Quarterly reconstitution of the DFX resulted in the removal of two cryptocurrencies and the addition of one. Universal market access (UMA) and bancor (BNT) were removed from the index, and Flexa’s amp (AMP) was added. The DFX is a market-cap-weighted basket of cryptocurrencies, representative of the DeFi (decentralized finance) category, as defined in the CoinDesk Indices Digital Asset Classification Standard.
In accordance with the CoinDesk DeFi Index reconstitution, Grayscale adjusted the DeFi Fund’s portfolio by selling certain amounts of the existing fund components in proportion to their weightings and using the cash proceeds to purchase amp (AMP).
As a result of the rebalancing, bancor (BNT) and universal market access (UMA) have been removed from the DeFi Fund.
AMP is the native token of the Flexa network, a payment network that enables crypto-collateralized payments at physical stores and online.
Flexa uses the AMP token to collateralize digital asset payments while they are confirmed on their blockchains and settles the payments in fiat to the recipient.
By enabling payments through the Flexa network, supporting merchants can more easily and confidently accept payment in BTC, ETH and other digital assets. The Flexa network is one of a number of projects intended to accelerate the development of the blockchain into a mature peer-to-peer money system, according to Grayscale.

DeFi Fund’s components as of Monday:

At the end of the day on Monday, the DeFi Fund’s Fund Components were a basket of the following assets and weightings.

Uniswap (UNI), 42.33%
Aave (AAVE), 13.06%
Curve (CRV), 10.63%
MakerDAO (MKR), 8.99%
Amp (AMP), 7.39%
Yearn Finance (YFI), 6.34%
Compound (COMP), 5.02%
Synthetix (SNX), 3.15%
SushiSwap (SUSHI), 3.09%

No new tokens were added or removed from Grayscale Digital Large Cap Fund. This announcement follows the October news that Grayscale adjusted the Digital Large Cap Fund’s portfolio and added solana (SOL) and uniswap (UNI).

At the end of the day on Monday, the Digital Large Cap Fund’s components were a basket of the following assets and weightings:

Bitcoin (BTC), 60.50%
Ethereum (ETH), 30.13%
Solana (SOL), 3.56%
Cardano (ADA), 3.05%
Uniswap (UNI), 0.77%
Chainlink (LINK), 0.71%
Litecoin (LTC), 0.69%
Bitcoin Cash (BCH), 0.59%

Neither the DeFi Fund nor the Digital Large Cap Fund generates any income, and both regularly distribute fund components to pay for expenses. Therefore, the amount of fund components represented by shares of each fund gradually decreases over time.

Note: This article was updated to clarify the relationship between the CoinDesk DeFi Index (DFX) and the Grayscale DeFi Fund.

Uniswap Aave Curve MakerDAO Yearn Finance Compound Synthetix SushiSwap Grayscale Digital Currency Group Bitcoin Ether Solana Cardano Litecoin Bitcoin Cash Chainlink DeFi

Greg Ahlstrand

Originally from California, I've been Asia-based since 1999, headquartered in Hong Kong and Jakarta and traveling throughout the Asean countries, Japan, Korea, the Chinese mainland and Taiwan for stories. Made Australia a couple of times, too. I started my journalism career as a news assistant at the Fresno Bee in Central California while studying the subject in school after the Navy. I went from launching and recovering helicopters on flight decks at sea to recovering papers fresh off the printer in the Bee's basement and launching them onto the editors' desks, whose editors had long since gone home for the night. Eventually, they let me stop delivering the paper and start writing stuff in it. My first beat was night cops: liquor store robberies, gang shootings, fatal car crashes (almost always alcohol related). It was an education. I am, as implied above, a U.S. Navy veteran. I served in seagoing helicopter squadrons as an aviation anti-submarine warfare technician throughout the Asia Pacific region and the Indian Ocean. I have a significant number of sailor stories to tell. I have no significant crypto holdings. Among my hobbies are welding, building stuff, home remodelling, (or knocking a house down and starting from scratch if it's too far gone to fix), riding horses and rebuilding old tractors. So far I've done a Ford 8N and a Ford 9N. It's slow going, because I live in Hong Kong and the tractors are in California, so I only get to work on them once or twice a year, for a week or two at a time - and that was before covid. I love my Lab, Cooper, whom my neighbors asked me to adopt two years ago when they moved back to Shanghai from Hong Kong. Cooper and I actually planned the whole thing -- we've known each other almost his whole life -- but his first parents are unaware of the conspiracy; and they send him Christmas presents every year.