Grayscale Investments has launched a new investment product for institutional clients called the Cardano (ADA) and six other cryptocurrencies Smart Contract Platform Fund.

Grayscale Investments has launched a new investment product that will allow investors access to popular smart contract platforms, including Cardano (ADA).

The Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE) is an investment product that will allow Grayscale’s customers to participate in supported smart contract platforms via a market capitalization-weighted portfolio.

According to the statement, the investment vehicle, which is Grayscale’s 18th, is meant to follow the CoinDesk Smart Contract Platform Select Ex ETH Index.

Solana (SOL), Avalanche (AVAX), Polkadot (POL), Polygon (MATIC), Algorand (ALGO), and Stellar are among the digital currencies that have recently been added to the fund (XLM).

The GSCPxE product simplifies things

Investors’ demand for diverse exposure has risen in tandem with the expansion of the bitcoin business, according to Michael Sonnenshein, CEO of Grayscale.

Why is Grayscale's Bitcoin Trust (GBTC) trading at a discount?

While there appears to be competition among the supported smart contract platforms, and investors may be unsure which network will eventually dominate others, Sonnenshein claims that clients do not have to compete, adding, “Instead can access the development of the smart contract platform ecosystem through a singular investment vehicle.” 

“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,” said Jodie Gunzberg, CFA & Managing Director at CoinDesk Indices.

Cardano’s Massive Expansion Since its introduction in 2017, its community has seen Cardano as an Ethereum killer. However, it took the developers more than three years to deliver on their promises and enable smart contract capability on the network.

Cardano has been actively accepted by programmers and decentralized exchange providers wishing to put their protocols on the network once the upgrade went live.

At the time of writing, a few decentralized exchanges had already gone live on Cardano’s mainnet, and more than 50 apps were in the works.

User activity has exploded throughout the Cardano network due to the community’s significant support, resulting in a rise in total value locked (TVL) across six decentralized exchanges.


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