Grayscale Investments, recognized as the largest crypto asset manager globally, has made a notable change to its Digital Large Cap Fund (OTCQX: GDLC) during its latest quarterly rebalancing. As of April 3, Cardano (ADA) has been removed from the fund, adjusting the portfolio to now include Bitcoin, Ethereum, Solana, XRP, and Avalanche.
Strategic Portfolio Adjustment
The rebalancing strategy involved selling off Cardano holdings and reallocating the proceeds to purchase other existing fund components according to their current weightings in the portfolio. This move has resulted in Cardano’s complete removal from the GDLC, altering its composition to primarily feature Bitcoin at 70.96%, followed by Ethereum at 21.84%, Solana at 4.52%, XRP at 1.73%, and Avalanche at 0.95%.
Quarterly Rebalancing Insights
The exclusion of Cardano from the GDLC marks a shift from its previous composition in Q4 2023, where Cardano accounted for 1.62% of the fund. The fund’s composition at the beginning of the year also highlighted a diverse mix of assets, including Bitcoin, Ethereum, Solana, XRP, Cardano, and Avalanche.
Additional Fund Adjustments
Grayscale’s announcement also touched on other funds, including the DeFi (decentralized finance) fund (OTCQB: DEFG), which saw no new tokens added or removed. Furthermore, the Grayscale Smart Contract Platform Ex-Ethereum Fund underwent rebalancing, leading to the removal of Cosmos (ATOM) from the fund.
Grayscale’s Move to Spot ETFs
Amid these adjustments, Grayscale has made significant strides by converting its Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF), which began trading on January 11. Despite experiencing substantial outflows since its transition, Grayscale continues to expand its ETF offerings, having filed to launch a spot Ether ETF with the U.S. Securities and Exchange Commission (SEC).
Grayscale’s strategic portfolio rebalancing reflects its ongoing effort to optimize investment opportunities for its clients while navigating the dynamic cryptocurrency market landscape. The removal of Cardano from the GDLC and other portfolio adjustments underscore the asset manager’s responsive approach to market developments and investment trends.
