Grayscale to Launch a DeFi Fund and Index for Institutional Investors to Gain Broad-based Exposure

The world’s largest digital asset manager, Grayscale Investments, announced on Monday that it is launching a DeFi Index and Fund. In an interview with CNBC Squawk Box, Grayscale CEO Michael Sonnenshein said they had seen interest from a broad base of its existing and prospective investors for decentralized finance (DeFi) assets. As such, Grayscale has developed an institutional-grade fund and index. Through this singular investment vehicle of theirs, Grayscale will allow its investors the ability to invest in DeFi protocols such as Uniswap (UNI), Aave (AAVE), and SushiSwap (SUSHI) and offer “broad” exposure. The firm now offers trusts for Bitcoin, Ether, and a bunch of other cryptocurrencies along with a Digital Large Cap Fund (GDCL), which it recently announced has become an SEC reporting company after GBTC and ETHE. During the interview, Sonnenshein also reiterated that they are committed to turning its main product Bitcoin Trust (GBTC), currently trading at a heavy discount of 12.32%, into a Bitcoin ETF. Just last week, the firm announced that it is working with the biggest custodian bank BNY Mellon to achieve this. “We are 100% committed to converting our flagship product GBTC into an ETF when regulatory approvals are ready for that type of product,” he said, adding the SEC is looking for a couple of different points of maturation in the underlying market, and that's the “final stages” that they think regulators need to approve such a product and give investors the protections they are looking for. For the US, to approve a Bitcoin ETF “is a matter of when not if,” Sonnenshein said.