Cardano has been added to Grayscale Investments’ large-cap cryptocurrency fund. It is now the third largest component of the fund after Bitcoin and Ether.
- Grayscale Investments, the world’s largest asset manager for digital currencies, announced on Friday the addition of cardano to its Digital Large Cap Fund (OTCQX: GDLC). Grayscale described this fund as “a passive, rules-based strategy that aims to gain exposure to 70% of the digital asset market.”
- The announcement followed a quarterly review and rebalancing of the fund. The company stated:
In accordance with the fund’s construction criteria, Grayscale adjusted the fund’s portfolio by selling certain amounts of the existing fund components in proportion to their respective weightings and using the cash proceeds to purchase cardano (ADA).
- At the end of the day on July 1, the components of the Digital Large Cap Fund consisted of 67.47% Bitcoin (BTC), 25.39% Ethereum (ETH), 4.26% Cardano (ADA), 1.03% Bitcoin Cash (BCH), 0.99% Litecoin (LTC) and 0.86% chain link (LINK).
- During April’s quarterly component weighting update, Grayscale added Chainlink to fill the void left by XRP, which was removed from the Digital Large Cap Fund when Ripple’s lawsuit with the US Securities and Exchange Commission worsened.
- Grayscale Investments currently manages approximately $ 30 billion (AUM) in assets. The company offers 14 investment products. The product with the largest AUM is the Bitcoin Trust (GBTC) with assets of over $ 22 billion, followed by the Ethereum Trust with nearly $ 6.9 billion. The Digital Large Cap Fund manages approximately $ 357 million in assets.
- Earlier this month, Grayscale announced that it was considering 31 crypto assets for investment products, including ADA. In April, the company announced its intention to convert GBTC into a Bitcoin Exchange Traded Fund (ETF).
- Meanwhile, the company has said it sees increasing institutional demand for cryptocurrencies. “Digital currencies have reached a turning point,” commented CEO Michael Sonnenshein in March. “The demand from investors has never been higher than ever, and every day we see new participants in an asset class that has certainly become a serious asset class.”
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