Logo
Cardano Ecosystem

Zycrypto

04/06/2024

·

87 views


Grayscale Axes Cardano (ADA) from Crypto Fund

Grayscale, the world’s largest crypto asset manager, has significantly adjusted its Digital Large Cap Fund (GDLC), removing Cardano (ADA) from the fund’s portfolio. This announcement came on Thursday as part...

Grayscale Axes Cardano (ADA) from Crypto Fund

Will Cardano Reach $8 In This Bull Cycle? Market Pundit Reveals ADA Price Trajectory To Expect

Grayscale, the world’s largest crypto asset manager, has significantly adjusted its Digital Large Cap Fund (GDLC), removing Cardano (ADA) from the fund’s portfolio. This announcement came on Thursday as part of the firm’s quarterly review for the first quarter 2024.

Notably, the company disclosed that it sold off its holdings in ADA as part of its quarterly rebalancing, reallocating the proceeds to purchase existing fund components in accordance with their respective weightings. As a result, ADA has been axed from GDLC.

Every quarter we rebalance and update the components of our three multi-asset funds, Grayscale Digital Large Cap Fund, Grayscale DeFi Fund, and Grayscale Smart Contract Platform Ex-Ethereum Fund,” the firm wrote, adding, “In accordance with the CoinDesk Large Cap Select Index methodology, Grayscale has adjusted GDLC’s portfolio by selling Cardano (ADA), and using the cash proceeds to purchase existing Fund Components in proportion to their respective weightings.”

With these adjustments, the GDLC Fund’s current composition includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX).

ADA’s removal follows a similar adjustment earlier in January, where Grayscale removed Polygon’s MATIC from its fund while incorporating assets such as Avalanche (AVAX) and XRP.

Advertisement  

Grayscale’s Digital Large Cap Fund is a pioneering security that invests solely in a basket of large-cap digital assets. As per the firm’s website, the fund aims to reflect the value of its digital assets while sidestepping the complexities associated with directly acquiring and storing these assets.

The decision to remove ADA from the GDLC Fund marks a significant shift from Grayscale’s previous stance. Notably, the firm added ADA to its large-cap fund in 2021, positioning it as the third-largest holding in the portfolio.

That said, Although Grayscale continues to hold a dominant position in institutional crypto custody and investment, the evolving regulatory landscape has prompted other industry players to diversify their portfolios beyond Bitcoin and Ethereum.

One such player is the Bitwise 10 Crypto Index Fund, which aims to mirror an index composed of the top 10 most valuable cryptocurrencies. Notably, this fund now provides investors with diversified exposure to ADA, albeit with a modest allocation of 1.1%.

As regulations become clearer, the expansion into alternative digital assets by other funds like VanEck could surge, giving investors a more diverse range of investment opportunities.

That said, Grayscale’s removal of ADA comes even as the cryptocurrency faces relatively stable price action following a tumultuous week where it experienced an 11.66% decline and relinquished its market cap position to Dogecoin.

The cryptocurrency traded at $0.58 at press time, reflecting a 0.56% drop in the past 24 hours.

AD

SNEKbot by DexHunter on CARDANO

Cardano's Telegram Trading Bot live on Cardano mainnet!TRADE NOW!


Read Original Article on Zycrypto

ORIGINAL SOURCE

https://zycrypto.com/grayscale-axes-card...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


Genius Yields DEX Launched!

More from Zycrypto

See more
Dogecoin Quarterly Wallet Growth Outpaces Long-Standing Competitors Ripple's XRP and Cardano (ADA)
Zycrypto
Dogecoin Quarterly Wallet Growth Outpaces Long-Standing Competitors Ripple's XRP and Cardano (ADA)

last Monday at 10:20 PM

·

29 views

Related News

See more
Genius Yields DEX Launched!

Featured News

See more



    DEFAULTENGLISH (EN)SPANISH (ES)RUSSIAN (RU)GERMAN (DE)ITALIAN (IT)POLISH (PL)HUNGARIAN (HU)JAPANESE (JA)THAI (TH)ARABIC (AR)VIETNAMESE (VI)PERSIAN (FA)GREEK (EL)INDONESIAN (ID)ROMANIAN (RO)KOREAN (KO)FRENCH (FR)CZECH (CS)PORTUGUESE (PT)TURKISH (TR)