Grayscale, the largest digital asset manager, has selected Cardano blockchain’s ADA coin as its new asset under management. The fund management company took this decision after its dedicated large cap fund’s periodic adjustment. The largest digital asset manager is also likely to create funds that could include cryptocurrencies that will be linked to decentralized finance (DeFi).
In its announcement, Grayscale has said that some adjustments have been done to the Grayscale Digital Large Cap Fund’s portfolio composition by “selling some [...] of the fund's existing components in proportion. of their respective [...] weightings to buy Cardano's ADA.”
Wit the introduction of Cardano (ADA) in dedicated large caps fund, Grayscale now offers it a weighting that is close to 4-times greater than most cryptos except Bitcoin (BTC) and Ethereum (ETH).
If we check the composition of portfolio of Grayscale Digital Large Cap Fund, Bitcoin (BTC) and Ethereum (ETH) have the largest weightage with 67.47% and 25.39% respectively. With the inclusion of Cardano (ADA), it has become the 3rd largest crypto in the dedicated fund with 4.26% weightage. The other 4 major crypto coins in the Grayscale Digital Large Cap Fund are Bitcoin Cash (BCH), Litecoin (LTC), and Chainlink (LINK) with 1.03%, 0.99%, and 0.86% weightages respectively.
Edward McGee, vice president of finance at Grayscale, said:
“We are delighted to welcome ADA to our Digital Large Cap fund portfolio as we strive to ensure that our diversified fund can safely hold assets that collectively represent 70% of the entire market. digital assets.”
This dedicated large cap fund of Grayscale had pulled XRP (XRP) out on January 5, 2021 after the US SEC filed a lawsuit against Ripple and its top management officials. The fund added the decentralized oracle, Chainlink (LINK), on April 6, 2021. In recent times, the largest digital asset management company has revealed that it’s studying other cryptos such as Solana (SOL), Polygon (MATIC), and other DeFi tokens, which they want to add in their single-asset funds.
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