On July 7, 2023, the digital asset manager Grayscale Investments published an update on three of its funds — the Digital Large Cap Fund, the Defi Fund, and the Smart Contract Fund. Although no new tokens were added to two of the funds, Grayscale revealed that it added Lido DAO’s native cryptocurrency and governance token, LDO, to the Defi Fund.
LDO Added to Grayscale’s Defi Fund
Grayscale Investments, the digital asset manager, announced its second-quarter 2023 update, which covers fund rebalancing and a new token addition to the Defi Fund. The Digital Large Cap Fund and Smart Contract Fund experienced no changes in terms of added or removed tokens.
Nonetheless, Grayscale disclosed in the update that it included Lido’s LDO token in the assortment of decentralized finance (defi) tokens held within the Defi Fund. The digital asset manager utilized cash proceeds to acquire the lido (LDO) token for the fund.
LDO holds the second-largest weight in the fund’s portfolio of coins, with uniswap (UNI) being the largest, representing 45.46% of the fund’s holdings, while LDO now accounts for 19.04%. Following UNI and LDO in terms of weight are AAVE (11.53%), MKR (10.82%), CRV (7.03%), and SNX (6.12%).
LDO ranks as the 33rd largest market capitalization out of nearly 10,000 crypto assets within the crypto economy. On Saturday, July 8, 2023, LDO increased by 2% against the U.S. dollar, but it has experienced a loss of more than 10% over the past 30 days.
Looking at six-month statistics, LDO is down 1%, and it remains 73% lower than the all-time high recorded on August 20, 2021. Currently, with the inclusion of LDO in the fund’s portfolio, Grayscale’s Defi Fund’s assets under management (AUM) stand at $3,144,411 as of July 7.
What are your thoughts on Grayscale’s addition of Lido’s LDO token to the Defi Fund and its impact on the fund’s portfolio? Share your thoughts and opinions about this subject in the comments section below.