Grayscale Investments has excluded Cardano from its Digital Large Cap Fund, which now comprises Bitcoin, Ethereum, Solana, XRP, and Avalanche. The adjustment comes as part of the fund’s quarterly rebalancing.
In the rebalancing process, Grayscale sold off Cardano and reinvested the proceeds into existing fund components proportionally. Consequently, Cardano has been entirely removed from the Digital Large Cap Fund.
The rebalancing occurred on April 3, resulting in Bitcoin representing 70.96% of the fund, followed by Ethereum at 21.84%, Solana at 4.52%, XRP at 1.73%, and Avalanche at 0.95%. Previously, during the Q4 2023 rebalancing, Cardano accounted for 1.62% of the fund.
Notably, Grayscale’s defi fund saw no changes in its token composition, while its Smart Contract Platform Ex-Ethereum Fund underwent rebalancing, leading to the removal of Cosmos (ATOM).
Grayscale recently converted its Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF), which commenced trading on Jan. 11. This move coincided with significant outflows from the fund. Additionally, Grayscale has applied for a spot Ether ETF with the U.S. Securities and Exchange Commission (SEC).
What are your thoughts on Grayscale’s decision to remove Cardano from its Digital Large Cap Fund? Share your opinions in the comments below.
