Crypto asset management firm Grayscale has announced a non-ETH trust fund launch, especially those for Ethereum’s main rivals such as Solana, Polkadot, Cardano, and Avalanche.
Grayscale’s Newest Investment Product
On March 22, Grayscale revealed its latest crypto investment fund product (Grayscale smart contract platform ex-Ethereum, GSCPxE). According to Grayscale, the primary objective of launching this new fund is for its institutional clients to gain exposure to other top smart contract networks apart from Ethereum.
Notable among these networks are Polygon, Cardano, and Solana. Cardano and Solana constitute about 25% of this fund, Polkadot and Avalanche constitute about 17% each, polygon constitutes about 9.66%, while Stellar and Algorand constitute approximately 4.5%. A top-level executive of the investment firm revealed that investors’ yearnings were the main reason it created this investment fund.
He further said, “the smart contract platform sector is still in its early stages, and no one can predict which platform will remain relevant over the long-term. Predictably, the digital economy can’t do without smart contract technology. Also, a high-speed, scalable and flexible platform is the only one that can attract and retain the best developer ecosystem.”
The main benefit for investors in this fund is that they won’t have to worry about choosing either of the platforms. That would be the responsibility of the fund – it will use the market cap of these altcoins to estimate their performances. Then, track their platform through Coindesk’s platform index tool.
The Rising Popularity Of The Ethereum Smart Contract Platform
The Ethereum network attracted lots of attention last year following the rising popularity of the DeFi and NFT sectors. The attention became higher following the network’s implementation of the EIP-1559 upgrade, in which the majority of the coins were burned, and gas fees were reduced drastically. Jodie Gunzberg, a Coindesk executive, remarked that investors started seeking alternative smart contract networks after ether’s unprecedented growth in the last 12 months.
“Many investors gained exposure to the smart contract platform space following Ethereum’s remarkable growth last year,” Gunzberg concluded. While the only specified investors can access this fund as of this writing, Grayscale plans to launch it on the secondary market similar to what it has often done with its other investment products.
Grayscale Is The Leader Among Crypto Asset Management Firms
Grayscale’s asset under management of $37B is unrivaled among any other crypto asset management firm globally. Last October, Grayscale applied to the SEC to convert its GBTC trust fund to a spot BTC ETF. As the financial watchdog delayed approving this application, Grayscale canvassed other American investors to write good things about the BTC ETF to the SEC.
The SEC has announced it will make a final decision on this matter within the next 90 days. Meanwhile, Ethereum’s CEO has expressed concerns that many crypto investors aren’t fulfilling the true potentials of the blockchain tech – affecting lives positively. He further stated that many are only interested in the glamor and display of riches.
