🔘 Grayscale Adjusts Large Cap Fund: Bitcoin & Ethereum Dominate
Grayscale Investments has made strategic moves in its Digital Large Cap Fund during its Q4 2024 rebalancing, heavily increasing the Bitcoin and Ethereum allocations to a combined 90%. Here's a breakdown of the changes:
• Bitcoin now holds 73.52% of the portfolio.
• Ethereum takes up 16.16% of the fund.
• Avalanche was removed from the fund due to underperformance, while Cardano was added with a 1.44% allocation, following its 75% price increase over the last year.
•XRP and Solana maintain shares of 5.05% and 3.83%, respectively.
Other Product Rebalances:
•The Decentralized AI Fund added Livepeer (2.83%).
•The Decentralized Finance Fund introduced Curve (6.71%), replacing Synthetix.
•In the Smart Contract Platform Ex-Ethereum Fund, Sui now has a 7.93% allocation, with Solana and Cardano remaining dominant, making up over 75% of the fund.
Regulatory Moves & ETF Anticipation:
Grayscale is pursuing regulatory approval to convert its large cap fund and other products into exchange-traded funds (ETFs). This comes amid growing expectations for more crypto-friendly policies with Gary Gensler stepping down as SEC Chair, replaced by Paul Atkins. There is anticipation for new ETFs involving assets like Solana, XRP, Litecoin, and HBAR, as regulatory acceptance begins to shift.
Potential ETF Approval:
With these moves, Grayscale is positioning itself for a potential ETF approval for its large-cap fund, assuming these assets gain regulatory approval. This could further strengthen institutional adoption and influence market dynamics.
