Grayscale Removes Polygon (MATIC) And Retains These Crypto Assets In Funds

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As a researcher with a background in crypto asset management and experience following Grayscale’s fund updates closely, I find Grayscale’s recent announcement of updated component weightings in its key funds intriguing. The removal of Polygon (MATIC) from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund) during rebalancing is a noteworthy development, given the token’s recent price performance and regulatory challenges.

Grayscale Investments, a leading crypto asset manager, unveiled revised compositions of the cryptocurrencies held in its major investment vehicles following Q2 2024 assessments. The funds under consideration are the Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund (DEFG), and Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE). Polygon (MATIC) was taken out of GSCPxE as part of these adjustments.

Grayscale Announces Updated Fund Component Weightings

Following careful assessments of crypto asset markets during the second quarter, Grayscale made adjustments to the compositions and proportions of GDLC, DEFG, and GSCPxE Funds. The changes are implemented on a regular basis based on market developments, indexes, and additional influencing factors.

Based on the most recent announcement, Grayscale Digital Large Cap Fund (GDLC) hasn’t introduced or eliminated any new tokens as of now. The current breakdown of the fund consists of Bitcoin (70.46%), Ethereum (23.51%), Solana (3.86%), XRP (1.54%), and Avalanche (0.63%).

I analyzed the latest developments in digital asset index funds and noted that CoinGape announced the inclusion of XRP and Avalanche (AVAX) in their indices earlier in January. These assets replaced Polygon (MATIC). Additionally, Cardano (ADA) was removed from Grayscale’s Digital Large Cap Fund (GDLC) in April.

As a researcher examining the latest adjustments in the Grayscale DeFi Fund (DEFG), I’ve noticed that although its component tokens have remained unchanged, their weightings have undergone significant shifts. Currently, Uniswap holds a dominating 53.75% share of the fund, followed by MakerDAO with 17.94%, Lido accounting for 12.68%, Aave occupying 10.58%, and Synthetix contributing 5.05%.

In addition, Polygon (MATIC) was removed and sold from Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund). The fund weightings are now rebalanced as per CoinDesk Smart Contract Platform Select ex ETH Index. The basket of the assets and weightings are Solana (65.80%), Cardano (14.67%), Avalanche (10.70%), and Polkadot (8.83%). Cash proceeds were used to purchase these crypto assets.

Polygon (MATIC) Price Performance and Outlook

The SEC’s recent classification of MATIC as a security has caused Polygon (MATIC) to slip from its previous ranking of 18 to number 21 on the list.

The cost of MATIC has decreased by approximately 34% over the past month as a result of the turbulence in the cryptocurrency market brought about by frantic selling from investors. Subsequently, there has been a recovery of more than 7% within the last 24 hours following the release of encouraging employment data, prompting the U.S. Federal Reserve to announce two interest rate reductions. The MATIC price reached a low of $0.4305 and a high of $0.4796 during this period. However, it’s important to note that trading volumes have experienced a significant decline of around 38% in the past day.

I’ve analyzed the recent market trends, and according to my findings reported earlier by CoinGape, the price of Polygon (MATIC) reached a two-year low after experiencing a significant 20% decrease over the past week. Despite being one of the most popular blockchain networks, the outlook for Polygon’s price remains weak. My data shows that its market position has been declining steadily since last year.

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2024-07-06 10:54