Grayscale is betting big on Uniswap.
The largest cryptocurrency investment manager announced a new decentralized finance (DeFi) fund providing investors exposure to the top cryptocurrencies by market cap.
Minimum investments start at $50,000, according to a report published on the firm’s website. While the Grayscale fund diversifies risk across smaller positions in tokens like Synthetix (a project aimed at creating synthetic versions of stocks on blockchain) and Yearn Finance (which allows investors to earn yield payments on digital assets), the majority of Grayscale’s positioning is behind the token of the decentralized exchange Uniswap (UNI).
Uniswap is built on top of the Ethereum network and allows users to trade cryptocurrencies via smart contracts. It released its UNI token last year via an air drop to any cryptocurrency wallet which used the exchange. Uniswap often serves as the primary entry point for users first entering the DeFi ecosystem, after moving their money off centralized exchanges like Coinbase.
Grayscale has allocated 49.95% of its DeFi portfolio to Uniswap. The firm’s number two allocation is a 10.25% position in Aave; a protocol allowing users to lend and borrow cryptocurrency.
“Based on the user adoption that we’re seeing around DeFi and DeFi protocols, we do think the future of this area is bright,” Grayscale CEO Michael Sonnenshein told CoinDesk on Monday.