Cardano Makes Quiet Comeback in Grayscale’s Multi-Asset Fund

The Grayscale Digital Large Cap has re-included Cardano as a core component. With the addition, ADA investors have intensified their buyups, pushing the price to a new weekly high. The Cardano (ADA)...

The Grayscale Digital Large Cap has re-included Cardano as a core component.
With the addition, ADA investors have intensified their buyups, pushing the price to a new weekly high.

The Cardano (ADA) blockchain has experienced a revival over the last few months, owing to a considerable price surge, key partnerships, and technical developments. These recent improvements have sparked increased institutional interest, as indicated by ADA’s reacceptance into Grayscale’s Digital Large Cap Fund (GDLC).

Grayscale Re-welcomes Cardano

In April, Grayscale, a leading crypto asset manager, announced that Cardano had been removed from GDLC, its biggest multi-asset fund. The firm stated then that a rebalancing in the CoinDesk Large Cap Select Index (DLCS) prompted the changes.

The CoinDesk index tracks the market capitalization-weighted performance of the five most liquid non-stablecoin crypto assets in the top 20. Grayscale explained that each asset’s components and weightings are established using the methodology of each index and are subject to change without notice.

Consequently, the asset manager sold off ADA held in GDLC, reinvesting the proceeds in other fund components based on their weightings.

According to Grayscale’s website, ADA is back in the GDLC as of January 6, 2025. This change is reflected in the rise of ADA’s volume in the preceding months. It is, however, not clear when Grayscale reintroduced ADA into GLDC.

It most likely occurred in the fourth quarter of 2024. This period coincides with ADA’s price spike of over 300% from $0.3263 to highs of $1.3264. Grayscale’s Q3 rebalancing statement did not mention ADA in the GDLC.

ADA has replaced Avalanche (AVAX) in the $811.5 million fund, which also includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP. Bitcoin has the highest market cap-weighted fund composition, at 73.52%, while ADA has the lowest, at 1.44%.

Possible ADA ETF In 2025?

Still, the fund holds over $11 million worth of ADA for investors, setting the altcoin for increased institutional exposure. ADA’s stake could grow outstandingly higher if Grayscale wins clearance to convert the GDLC into an Exchange-Traded Fund. Grayscale already filed for this move in October 2024.

The potential for a spot ADA ETF has sparked considerable interest in the crypto community. Last year, Cardano Founder Charles Hoskinson hinted at the possibility of ADA joining the spot ETF race. Per a CNF report, the potential launch of spot ADA ETF would mark another big milestone for Cardano and the broader crypto market.

A potential ADA ETF launch in 2025 is not impossible, especially considering the emergence of a pro-crypto government in the US. A change of power at the US Securities and Exchange Commission (SEC) following Donald Trump’s inauguration could mark a major shift in crypto regulations.

ADA is still riding on a bullish momentum in the broader crypto market. Within the last 24 hours, ADA’s price has surged by 5.73% to $1.14. As disclosed in a CNF update, market analyst Dan Gambardello forecasted that ADA could hit the $10 mark this cycle.

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.