Summary:
Grayscale has restructured its Digital Large Cap Fund, focusing 90% on Bitcoin and Ethereum.
Avalanche has been removed due to poor performance, while Cardano has been added.
Solana and Cardano dominate the GSCPxE Fund with a 75% weighting.
NEAR Protocol and Polkadot are also being included in various funds.
Grayscale aims to convert its funds into ETFs amidst changing regulatory landscapes.
Grayscale Rebalances Crypto Large Cap Fund
Grayscale Investments has announced a significant reshuffle of its crypto-focused funds, highlighting both winners and losers in the current market.
Major Changes in the Digital Large Cap Fund
The asset manager has removed Avalanche from its Digital Large Cap Fund and allocated a small portion to Cardano. Now, Bitcoin and Ethereum dominate this portfolio, comprising 90% of the assets. The remaining funds are divided among XRP, Solana, and the newly added Cardano.
In an official statement, Grayscale explained that this adjustment was influenced by fluctuations in the CoinDesk Large Cap Select Index.
Performance Comparison
Avalanche has struggled recently, with its price remaining flat compared to last year. In stark contrast, Cardano has surged by 75% over the same timeframe.
Adjustments in the GSCPxE Fund
Further changes have been made to the GSCPxE Fund, which focuses on smart contract platforms excluding Ethereum. Here, Solana and Cardano are weighted at 75%, while Avalanche holds about 9%. Additionally, Sui has been introduced into this fund, accounting for 8%, leaving some room for NEAR Protocol and Polkadot.
AI Fund Rebalancing
The AI Fund is also seeing modifications, with a more balanced distribution across various crypto projects. NEAR Protocol leads with a 30% weighting, followed by Render at 20%, Bittensor at 19%, Filecoin at 17%, and The Graph at 10.45%. A new investment of 2.8% has been made in Livepeer, focusing on decentralized video infrastructure.
Changes in the DeFi Fund
In the Grayscale Decentralized Finance Fund, Synthetix has been replaced by Curve as the smallest holding, which is heavily influenced by Uniswap (47.88%) and Aave (27.87%).
Grayscale rebalances its multi-asset funds quarterly and is keen on expanding its offerings of exchange-traded funds to investors on Wall Street. They are currently looking to convert both the Digital Large Cap Fund and the Solana Trust into ETFs, hoping for favorable regulatory conditions under the upcoming SEC leadership.
Edited by Stacy Elliott.
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