Grayscale Investments is planning to launch a decentralized finance fund that will focus on blue-chip assets.
Michael Sonnenshein, CEO of digital asset management behemoth Grayscale, has announced a new investment vehicle focused on decentralized finance (DeFi) assets.
During a presentation on CNBC’s Squawk Box, Sonnenshein introduced Grayscale’s proposed DeFi Fund and Index. According to the CEO of Grayscale, the fund would provide exposure to DeFi assets such as Uniswap (UNI) and Aave for Grayscale’s institutional clients.
According to Grayscale’s CEO, the decision to launch a DeFi fund, the firm’s 15th crypto investment product, was motivated by the growing interest in popular crypto assets in the decentralized finance industry.
Institutional interest in crypto diversifies away from Bitcoin (BTC), with both Ether (ETH) and DeFi assets allegedly starting to come up in the debate. Cointelegraph revealed in April that DeFi money markets were becoming increasingly tempting to institutional investors.
As more regulated firms enter the DeFi arena, talk of rules for the niche crypto market sector has intensified. Some industry insiders even believe that more legislative clarification is essential for the DeFi space to engage with real-world assets.
Sonnenshein claimed that a Bitcoin exchange-traded fund (ETF) clearance in the United States would eventually materialize when asked about alternative institutional investing opportunities for crypto. The Grayscale CEO earlier told Cointelegraph that the market was only a “few degrees of maturation” away from seeing an approved ETF.
According to reports, Grayscale is negotiating with BNY Mellon to turn its Bitcoin Trust into a Bitcoin ETF. Sonnenshein claims that the crypto asset management is “100% dedicated” to making its flagship GBTC product a Bitcoin ETF.