Earlier this week, Grayscale Investments launched the Grayscale Decentralized Finance (DeFi) Fund, contending it will allow investors to gain exposure to some of the top DeFi protocols through a market cap-weighted portfolio that tracks the CoinDesk DeFi Index (DFX).

The DeFi fund is the firm’s fifteenth investment product, which already includes the Grayscale Bitcoin Trust and Grayscale Ethereum Trust.

Even as Ethereum (ETH) prices have slid — falling to $1,905.47 as of Wednesday morning, after rising above $4,000 in May — DeFi growth has only sped up. The DeFi market cap, as calculated by CoinGecko, is currently $68 billion – up from $22 billion at the start of the year.

“We’ve noticed a trend towards investors seeking expanded exposure and greater diversification within their crypto portfolio. Investors are evaluating a broader set of digital assets for their portfolios and they are eager to get exposure to emerging parts of the crypto ecosystem,” Grayscale CEO Michael Sonnenshein told Crypto Investor in an email. “DeFi represents one such opportunity, as a new sub-set of assets within the broadly defined crypto space.”

The news also marks the introduction of the DeFi index itself, which is being run by CoinDesk Indexes.

“Having our fund track a market cap-weighted index was an intentional decision that reflects our desire to provide investors with exposure to a strong representative sampling of the DeFi space. It’s still early days in DeFi, and we think this space will continue to evolve in ways that aren’t fully predictable,” Sonnenshein said. “A market cap weighting makes the construction of the fund transparent, easy to understand and ensures that it effectively represents the relative valuations of the fund’s constituents.”

dfx-weightings-july-21

Earlier this week, Grayscale Investments launched the Grayscale Decentralized Finance (DeFi) Fund, contending it will allow investors to gain exposure to some of the top DeFi protocols through a market cap-weighted portfolio that tracks the CoinDesk DeFi Index (DFX).

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