Gray News: Gray launches model portfolio with exposure to BTC, ETH, SOL and LINK

Core Insights

Grayscale's latest developments focus on launching four portfolio models for Bitcoin (BTC), Ethereum (ETH) and other digital assets. Among them, the "Core Plus" portfolio incorporates BTC, ETH, SOL and LINK into the allocation, implements quarterly rebalancing, and sets a single asset position limit of 40%. In addition, Grayscale has filed a revised Form S-3 with the Securities and Exchange Commission (SEC) aimed at converting its Bitcoin cash trust fund into an exchange-traded fund (ETF).

Grayscale News: Introduction of Portfolio Framework

In the latest Grayscale developments, each model strategy integrates digital asset exchange-traded products (ETP) within a single framework. These methodologies cover asset selection, position management, diversification allocation and rebalancing mechanisms. Laurie Katz, global director of distribution at Grayscale, said that more and more advisers are looking to add digital assets to existing client portfolios.

Grayscale Official Announcement| Source: GlobeNewsWire

However, advisers often seek an allocation framework that does not require managing each asset separately. Katz pointed out that these models use Grayscale's portfolio building experience and more than a decade of digital asset industry heritage. As a result, Grayscale Advisors will deliver these models directly to financial platforms. These platforms will then provide strategies for advisers to apply to customer accounts. Advisers retain full discretion on how to apply each recommended configuration and can manage the resulting digital asset exposure along with other held assets in each client's portfolio.

The four strategies launched this time are built around their own independent investment goals. Each strategy consolidates positions through eligible exchange-traded products, rather than directly allocating them at the sole option of the adviser. In all four models, market value determines weights, quarterly rebalances reset allocations, and the maximum position for each asset is 40%.

Four major strategies to diversify digital asset exposure

At the same time, Grayscale's press release describes "Digital Assets Core Plus" as a basic configuration based on mature cryptocurrencies. The combination combines Bitcoin and Ethereum with select assets, including Solana and Chainlink.

"Digital Assets Leaders" cover the five largest eligible assets available through single-asset Grayscale ETPs. As market leadership changes, the model's positions will also be adjusted. As a result, its list of eligible assets can evolve while the strategy maintains its established focus on leading digital assets.

In addition to the above two strategies, Digital Assets Next Gen excludes Bitcoin and extends coverage to other cryptocurrencies. It can hold up to 10 qualifying assets, covering both mature and emerging parts of the digital asset market.

Finally, Digital Assets Infrastructure focuses on assets related to protocols that support smart contracts, tokenization, and other basic applications. Overall, these four strategies separate broad market exposure, market leaders, non-Bitcoin assets, and protocol infrastructure into different configuration frameworks.

Bitcoin Cash Trust seeks listing on NYSE Arca

In addition to model portfolio, another Grayscale development involves plans to convert its Bitcoin Cash Trust Fund into an ETF. On September 11, Grayscale filed a revised S-3 registration statement with the SEC outlining the plan structure. Grayscale plans to rename the tool "Grayscale Bitcoin Cash Trust ETF" and list its shares on NYSE Arca. The ticker symbol will continue to use BCHG, which currently identifies the trust fund on the OTCQX market.

The document describes the instrument as a Delaware statutory trust that holds Bitcoin Cash. Each share represents fractional ownership of the underlying trust. Coinbase Custody Trust Company serves as the custodian, while Coinbase serves as the main broker. At the same time, Bank of New York Mellon is responsible for transfer agency and administrative responsibilities.

However, the name change is subject to the registration statement taking effect and the shares being eligible for listing on NYSE Arca. After these steps are completed, Grayscale Investments Sponsors, LLC will implement the new name. The registration covers an unspecified number of shares issued through a continuing issue.

Under the proposed arrangement, the sales price will reflect the value of the underlying Bitcoin cash held by the trust fund. The trading price of the shares on NYSE Arca will also be considered for each sale.