As one of the earliest asset management companies involved in the blockchain field, Grayscale’s industrial sensitivity is worth learning from. In fact, in addition to single-target trust funds, Grayscale also launches active funds for private equity. Although these products are difficult for ordinary people to access, we might as well regard them as grayscale’s promising currencies in their respective fields.

Grayscale Digital Large Cap Fund: Don’t touch meme coins

The Grayscale Digital Large-Cap Fund is one of the first securities to invest individually in a basket of large-cap digital assets in the form of securities and obtain value from them. The fund was established as early as February 2018. The fund holds digital assets with the largest market capitalization, the most liquidity, and meeting specific trading and custody requirements in a market-capitalization-weighted manner. The fund currently has $490 million in assets under management.

The fund’s largest asset component is Bitcoin, accounting for 75%. Followed by Ethereum, accounting for 17.9%. Solana, Ripple, and AVAX followed, with 4.13%, 1.86%, and 0.65% respectively.

This part of the currency selection is not difficult to understand, but in fact, compare the quotations of Coindesk, the grayscale data source. You will find that if you only look at market value, Grayscale still skips many currencies, such as BNB, DOGE, TRON, TON, ADA, SHIB, etc. The author uses this to elaborate on the currency selection logic of the fund. Meme coins such as DOGE and SHIB will not be included in the selection. BNB, TRON, TON, etc. have regulatory concerns (although Ripple has similar issues). ADA is unknown, and there may be more considerations besides market capitalization and circulation.

(SEC appealed again against Ripple case, XRP fell 11% after hearing the news)

Grayscale Decentralized Finance Fund: Only loves Ethereum, but no other chain can beat it?

Another Grayscale decentralized finance (DeFi) fund, there are no big surprises. 51% of the assets are Uni (although Uniswap also faces difficulties from the SEC). The other 22% is the lending protocol AAVE, and Sky (the stablecoin protocol formerly known as Maker) accounts for 12.7%. There are also 9.3% of the liquidity staking protocol token Lido and 4.5% of the derivatives liquidity protocol SNX.

From the perspective of total locked value (TVL), Lido’s leading position in the liquidity staking protocol is difficult to shake amid the widespread competition for staking and re-staking in the Ethereum ecosystem. But one thing can be observed. Grayscale’s DeFi fund only favors the Ethereum ecosystem and does not have much interest in the DeFi protocols of other public chains for the time being. This observation can be verified in Grayscale’s Q4 report. In the Q4 report, Grayscale removed Raydium, the DeFi leader of the Solana ecosystem.

(Grayscale has added 6 new currencies to the Top20 list, and is optimistic about its performance in the next quarter)

ADA Forever? Grayscale Smart Contract Platform Fund holds established public chains

Then I saw the Grayscale Smart Contract Platform Fund, which was formerly known as the Ethereum Fund. The official website states that the fund is one of the first securities to independently invest in the native tokens of emerging smart contract platforms and derive value from their prices. Although it does not mention whether rewards will be obtained for staking tokens on the PoS public chain.

The fund holds 66% of its assets in Solana, which may be a milestone in Solana's institutional adoption. Followed closely by ADA (Cadano) at 12%. Although the currency price and ecology have been silent for a long time, we can still see ADA in these funds.

(VanEck Prices Solana at Fair Price at 330 mg, Calls Institutions to Hold SOL)

Then there is AVAX with 10.5%. Although developers have been working on fast, stable and cheap network services, this old public chain has been silent for a long time. AVAX is divided into X-Chain (Exchange Chain), P-Chain (Platform Chain) and C-Chain (Contract Chain). Under the multi-chain design, most users will come into contact with C-Chain. Perhaps the future chain game version of MapleStory can bring a new atmosphere to AVAX.

Finally, there is Polkadot at 6.13% and Near at 5.35%. Polkadot was designed by Gavin Wood, co-founder of Ethereum, and is a Layer 0 public chain. Although users may not have heard of Polkadot, they have more or less used public chains built on Polkadot.

Near is regarded as an AI concept chain because its founder has been involved in the AI ​​field for a long time. Near can also be seen in the grayscale Q4 report.

The combination of artificial intelligence and blockchain: Grayscale Decentralized Fund

The hottest topic in the blockchain industry this year is the combination of AI and blockchain. It can even be said that the largest financing this year is related to AI. In previous articles, we also explained why VCs are so fond of related topics. This may also be a topic with a relatively high entry barrier. We might as well see what Grayscale thinks of related fields.

(New startups with billions of valuations are born! Why are venture capital institutions so fond of artificial intelligence?)

Grayscale Decentralized Artificial Intelligence Fund is the latest fund, launched this year. The official website states that the fund will focus on the integration of artificial intelligence and blockchain technology. This fund can be said to have the most diversified asset holdings today, with TAO (Bittensor) holding the largest holdings at about 29.5%. The total quantity of TAO is also set at 21 million, and the design of halving production makes it known as AI Bitcoin. TAO's business is mainly machine learning and AI model training.

Then it also holds about 29.15% of NEAR and 16.68% of FIL (Filecoin). Filecoin is a decentralized storage network whose main business is to provide decentralized cloud storage services. Unlike traditional cloud storage providers (such as Amazon, Google, etc.), Filecoin uses blockchain technology to allow users to rent out unused storage resources or use them to store data. (According to the author’s investigation, the investment institutions behind Filecoin include DCG, the parent company of CoinDesk and Grayscale.)

RENDER's main business, accounting for 14%, is the decentralized GPU rendering market, which has increased by more than 300% from the beginning of the year to its historical high. The Graph, accounting for 10.55%, is a decentralized data indexing and query protocol mainly used for decentralized applications (dApps) on blockchains such as Ethereum. GRT is the protocol’s native token and serves as part of the economic incentive mechanism. The goal of The Graph is to allow dApps to access blockchain data more efficiently and reduce the threshold and cost of data query.

This article Grayscale has quietly laid out these coins! An article overview of the layout of its four major private equity funds first appeared on Lian News ABMedia.