Categories: Bitcoin Latest News

Grayscale, in the Spotlight as GBTC Discount Widens, Says DeFi Fund Now Trading

The debut of the “DEFG” fund in over-the-counter markets comes as Grayscale’s largest fund, the Grayscale Bitcoin Trust (GBTC), is under distress and at the center of crypto-market speculation.Read MoreCoinDesk

Grayscale Investments, manager of the world’s biggest publicly-traded bitcoin fund, said a new decentralized finance (DeFi) fund has started trading on over-the-counter markets.

The trading debut for the new fund, under the symbol “DEFG,” comes as Grayscale’s largest fund, the Grayscale Bitcoin Trust (GBTC), is under distress, with its shares trading a record 47% discount to the value of the underlying cryptocurrency. Grayscale has said it’s operating business as usual, but speculation about the fund’s future has arisen among traders and on Twitter in recent weeks amid swirling questions about the finances of Grayscale’s parent company, Digital Currency Group, after a halt in crypto lending operations at another subsidiary, Genesis Global Capital. (CoinDesk is also a subsidiary of Digital Currency Group.)

Similar to Grayscale’s other multi-asset investment vehicles, the new DeFi fund is designed to give investors exposure to price movements of a basket of digital assets through a single investment vehicle via the stock market instead of buying the cryptocurrencies directly. DEFG tracks the CoinDesk DeFi Index (DFX), which includes the likes of Aave (AAVE), Uniswap (UNI) and Compound (COMP).

The components of the fund will be evaluated on a quarterly basis, according to the press release.

This is Grayscale’s 15th digital currency investment product to trade on OTC markets, according to the press release.

Read more about

GBTC Grayscale Funds DFX DeFi DCG

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.