Grayscale Investments Launches Cardano (ADA) and 6 other altcoins Smart Contract Platform Fund which is a new investment product for Institutional Clients.
A deal’s a deal. Meet GSCPxE (Grayscale Smart Contract Platform Ex-Ethereum Fund), our newest investment product. https://t.co/sm7VJzOJcV #GSCPxE $SOL $ADA $DOT $AVAX $ALGO $MATIC $XLM
— Grayscale (@Grayscale) March 22, 2022
Grayscale Investments has announced the launch of an investment product that will give its clients exposure to selected leading smart contract platforms, including Cardano (ADA).
The investment product, dubbed the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE), will enable the firm’s clients to invest in supported smart contract platforms via a market capitalization weighted portfolio.
Per the announcement, the investment vehicle, which is the 18th investment product launched by Grayscale, is designed to track the CoinDesk Smart Contract Platform Select Ex ETH Index.
Aside from Cardano, other digital currencies currently added to the fund include Solana (SOL), Avalanche (AVAX), Polkadot (POL), Polygon (MATIC), Algorand (ALGO), and Stellar (XLM).
GSCPxE Product Makes Things Easier
Michael Sonnenshein, CEO of Grayscale, noted that investors’ appetite for diversified exposure has surged alongside the evolution of the cryptocurrency industry.
While there seems to be competition among the supported smart contract platforms and investors may seem confused to select the network that could eventually dominate others, Sonnenshein said clients do not have to engage in such competition, adding:
“Instead can access the development of the smart contract platform ecosystem through a singular investment vehicle.”
Commenting on the development, Jodie Gunzberg, CFA & Managing Director at CoinDesk Indices, said: “Many investors allocated to ETH given its explosive growth over the past year, so now there is a demand to get exposure across the rest of the Smart Contract Platform sector.”
Cardano’s Massive Growth Since Last Year
Cardano has been considered an Ethereum killer by its community since it launched in 2017. However, it took more than three years before the developers lived up to its promises and enabled smart contract support on the network.
Ever since the update went live, Cardano has been widely adopted by developers and decentralized exchange providers looking to deploy their protocols on the network.
At press time, a handful of decentralized exchanges have already gone live on Cardano’s mainnet, and over 50 applications are geared to launch on the network.
Following massive support from the Cardano community, user activity has skyrocketed across the network, leading to a surge in the total value locked (TVL) across six decentralized exchanges.