In a calculated maneuver to broaden its crypto investment portfolio, Grayscale, the prominent asset management titan known for its pioneering Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs), unveiled a new fund on Tuesday, specifically targeting the governance token of the decentralized lending platform MakerDAO (MKR).

The announcement catalyzed a swift market reaction, with MKR surging over 5% within an hour, reaching a value of $2,100. This surge extends MKR’s upward trajectory, now boasting nearly an 8% increase over the past 24 hours, a significant outperformance relative to the predominantly stagnant CoinDesk 20 Index.

The newly introduced Grayscale MakerDAO Trust is available exclusively to eligible accredited investors, both individual and institutional. Structured akin to the firm’s other single-asset trusts, it operates as a closed-end fund, where direct asset withdrawals are restricted. This structure may lead to potential price discrepancies between the fund’s market share and the underlying MKR asset in secondary markets.

MakerDAO, a cornerstone in the decentralized finance (DeFi) ecosystem, operates under the governance of a decentralized autonomous organization (DAO), where MKR token holders play a pivotal role in governance, participating in critical decision-making processes and voting on key proposals. The protocol manages a substantial portfolio exceeding $7 billion, encompassing both crypto and real-world assets (RWA), including U.S. Treasuries. It is also the issuer of DAI, the third-largest stablecoin in the market with a circulation of $5 billion.

Currently, MakerDAO is undergoing a significant overhaul termed “End Game,” an initiative spearheaded by its founder, Rune Christensen. This revamp includes the issuance of upgraded versions of MKR and DAI, further cementing MakerDAO’s position in the DeFi space.

Grayscale’s latest offering is part of a broader strategy to diversify its crypto fund portfolio. Just last week, the firm introduced single-asset funds for the decentralized artificial intelligence (AI) project Bittensor’s TAO token and the layer-1 blockchain Sui (SUI). Additionally, nearly a month ago, Grayscale launched a decentralized AI-focused fund, investing in a diversified basket of cryptocurrencies, including Near (NEAR), Render (RNDR), and Filecoin (FIL).

This strategic expansion underscores Grayscale’s commitment to leading the charge in offering innovative crypto investment products, reflecting the evolving landscape of decentralized finance and AI within the blockchain ecosystem.