Grayscale Removes Polygon (MATIC) And Retains These Crypto Assets In Funds

Crypto asset management firm Grayscale Investments has announced that it has updated the crypto asset weightings of its flagship funds, Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund (DEFG) and Grayscale Smart Contract Platform Ex Ethereum Fund (GSCPxE Fund), based on a review of the second quarter of 2024. The funds are: Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund (DEFG) and Grayscale Smart Contract Platform Ex Ethereum Fund (GSCPxE Fund). As part of the rebalancing, the company has removed Polygon (MATIC) from the GSCPxE Fund.

Grayscale Announces Updated Fund Composition

Grayscale announced the changes to its GDLC, DEFG and GSCPxE funds after carefully considering the performance of crypto assets in the second quarter. Compositions and weights will be rebalanced quarterly depending on market events, indexes and other factors.

According to the latest press release, no new tokens have been added or removed. Grayscale Digital Large Cap Fund (GDLC). The composition is Bitcoin (70.46%), Ethereum (23.51%), Solana (3.86%), XRP (1.54%), and Avalanche (0.63%).

As reported by CoinGape, XRP and AVAX were added in place of Polygon (MATIC) in early January, while Cardano (ADA) was removed from the GDLC in April.

Meanwhile, the Grayscale DeFi Fund (DEFG)’s components remain the same, but the weightings have changed to Uniswap (53.75%), MakerDAO (17.94%), Lido (12.68%), Aave (10.58%) and Synthetix (5.05%).

Additionally, Polygon (MATIC) was removed from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund) and sold. The fund’s weightings were rebalanced according to the CoinDesk Smart Contract Platform Select ex ETH Index. The asset basket and weightings are: Solana (65.80%), Cardano (14.67%), Avalanche (10.70%) and Polkadot (8.83%). Cash proceeds were used to purchase these crypto assets.

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Polygon (MATIC) price trends and outlook

Polygon (MATIC) shares dropped to 21st place after the U.S. Securities and Exchange Commission (SEC) listed MATIC among cryptocurrencies it considers to be securities.

MATIC’s price has fallen 34% in a month as investors panic selling has caused the cryptocurrency market to crash. The price has recovered over 7% in the past 24 hours as new employment data confirmed the US Federal Reserve’s second interest rate cut. The 24-hour low and high were $0.4305 and $0.4796, respectively. However, trading volume has fallen 38% in the past day.

As previously reported by CoinGape, the price of Polygon (MATIC) has fallen 20% in a week, hitting a two-year low. Despite being one of the most popular blockchain networks, the price outlook remains weak, and Polygon’s market position has been in continuous decline since last year.

Related article: House prepares for crucial vote on Biden’s veto of SAB 121 crypto rules

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Varinder has 10 years of experience in the Fintech sector, of which over 5 years have been dedicated to Blockchain, Crypto and Web3 development. A technology enthusiast and analytical thinker, he has shared his knowledge on disruptive technologies in over 5,000 news articles, articles and papers. At CoinGape Media, Varinder believes in the huge potential of these innovative futuristic technologies and is currently covering all the latest updates and developments in the crypto industry.

The presented content may contain the personal opinions of the author and are subject to market conditions. Please conduct market research before investing in cryptocurrencies. The author or publication is not responsible for any of your personal financial losses.


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