Solana now holds the fourth-largest weightage in this flagship fund of this institutional investment vehicle.
Another boost for Solana
In one of the landmark events for the token, Grayscale Investments has added Solana (SOL) to its flagship crypto fund, the GrayScale Digital Large Cap Fund, which includes the premier cryptocurrency, Bitcoin (BTC), as well as the native token of the most utilized blockchain, Ethereum (ETH).
Solana is the most recent inclusion in this fund generally reserved for the most prominent cryptocurrencies in the market. The current weightage of the token in the fund is 3.24%. It’s noteworthy that in this adjustment, the allocation to BTC is 61.72%, while before that, it was at 67.47%. In July, the fund was adjusted to include Cardano (ADA) as a part of its portfolio with 5.11% weightage.
“In accordance with the Digital Large Cap Fund’s construction criteria, Grayscale has adjusted the Digital Large Cap Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase Solana (SOL) and Uniswap (UNI),” as mentioned in the official press release by Grayscale Investments.
Over the years, Grayscale Investments have become one of the benchmarks of institutional interest in the cryptocurrency markets. Institutional investors often use their funds to gain exposure to the volatility and the potential opportunities for gains available in the digital asset domain.
Earlier this year in June, Grayscale also launched the DeFi fund that includes several assets linked to the DeFi markets like UniSwap (UNI), Compound (COMP), Yearn Finance (YFI), MakerDAO (MKR), Aave (AAVE), SushiSwap (SUSHI), amongst others.
American investors and celebrities Prefer FTX and Solana
It could be a vote of institutional confidence in the expanding ecosystem that Solana is included in the Large Digital Cap Fund. Sol’s presence reduces the portfolio allocation of tokens like BTC and LTC that have been around in the cryptoverse for longer.
The exchange chose the blockchain to develop their non-custodial decentralized exchange (DEX), Serum, which currently has a total value locked (TVL) of $525 million as per data by DefiLlama.
The CEO of FTX exchange and Alameda Research, Sam Bankman-Fried, is one of the prominent backers of Solana. Bankman-Fried just landed on the Forbes 400, with his face next to Elon Musk and Jeff Bezos, nonetheless. He has a growing Einstein-esque appeal with all that hair.
“There’s been a lot more interest institutionally. (Solana is) one of the only blockchains that have a compelling long-term road map” that will be eventually able to support industrial uses of crypto,” said Bankman Fried in an interview with Bloomberg.
The blockchain network and the associated exchange have partnered with several celebrities based in the U.S. NFL superstar, Tom Brady and his partner, supermodel Gisele Bündchen, announced that they had taken an equity stake in the FTX exchange as a part of a long-term partnership. Bündchen also stepped into the role of the environmental and social initiatives adviser. Brady had even suggested that he would love to get paid in BTC, ETH, or SOL tokens on Jim Grey’s podcast, Let’s Go!.
FTX even brought NBA legend Stephen Curry as a brand ambassador to capitalize on the erupting NFT market. Both Curry and Brady will launch Non-fungible Token (NFT) collections on FTX’s platform.
NFTs have been all the rage in the Solana ecosystem. So much so that the TVL in protocols on the Solana network could soon flip the TVL on the Binance Smart Chain (BSC). A Solana-based NFT SolMonkey sold for over $2.2 million in value on Oct. 3, i.e., 13,027 SOL tokens. This NFT came from the Solana Monkey Business collection that currently has a market capitalization of $347.2 million, with an average price of each NFT being 408.5 SOL tokens, according to data from Solanalysis.
About Grayscale Investments
Grayscale Investments is a subsidiary of the Digital Currency Group (DCG), a leading venture capital company that focuses on blockchain technology and the digital assets market. As of October 10th, the firm’s net assets under management (AUM) stand at $43.6 billion.
Source : solana.news
