Grayscale Sells All $ADA From Large Cap Fund, Cardano Price Falls
The Cardano (ADA) price has dropped 12% since the week began, including a 2.6% decline today. ADA is the 9th biggest cryptocurrency with a $20.27 billion market value.
The crypto market is mainly sideways to downward, with ADA losing more than its peers like ETH (7.4%), BNB (6.4%), Solana (6.3%), and XRP (6.1%).
Cardano's faster decrease may be due to the Grayscale Digital Large Cap Fund's sale of all ADA holdings. On January 4, the $579 million fund held 1.62% of its portfolio, or $9.4 million, in Cardano.
Grayscale Investments revealed the decision Thursday at its first-quarter 2024 review. The official news announcement said that GDLC sold Cardano and allocated the cash profits to Fund Components according to their weightings.
This rebalance removed ADA from GDLC's portfolio. The fund's ultimate composition on April 3, 2024, is Bitcoin (70.96%), Ethereum (21.84%), Solana (4.52%), XRP (1.73%), and Avalanche (0.95%).
According to the press release, Grayscale sold Cardano (ADA) and used the cash proceeds to buy Fund Components in proportion to their weightings in line with the CoinDesk Large Cap Select Index methodology. After rebalancing, Cardano (ADA) was withdrawn from GDLC.
Grayscale also emphasized the quarterly examinations of the GDLC, DEFG, and GSCPxE Fund compositions to update or add Fund Components depending on Index Provider index methodology. This ensures the funds' holdings match current market trends and asset performance.
Cardano remains in the Grayscale Smart Contract Platform Ex-Ethereum Fund. The coin ranks second behind Solana (58.41%) with 14.56% weighted.
This concise statement captures the volatility of crypto investments and the huge influence that large financial firms like Grayscale may have on digital asset markets.
ADA traded at $0.57 press time. For short-term bullish momentum, ADA must exceed the 100-day EMA at $0.58. Three times since mid-January, the 100-day EMA has provided solid support.
